Question

In a Triple Net lease, if a landlord increases the building&#x27;s insurance coverage, which party is contractually obligated to pay for the resulting increase in premiums?

Accepted Answer

In a Triple Net lease, also known as an NNN lease, the tenant is contractually obligated to pay for the increase in insurance premiums. A Triple Net lease is a commercial real estate agreement where the tenant agrees to pay all three primary property expenses in addition to base rent: property taxes, building insurance, and common area maintenance. Because the tenant assumes the responsibility for the insurance costs of the building, any increase in the premium resulting from the landlord raising the coverage level becomes a direct operating expense passed on to the tenant. For example, if a landlord decides to increase the property&#x27;s insurance policy to cover a higher building valuation or additional hazards, the cost of that premium hike is invoiced to the tenant as part of their obligation to cover property operating expenses.

In a Triple Net lease, if a landlord increases the building's insurance coverage, which party is contractually obligated to pay for the resulting increase in premiums?

In a Triple Net lease, also known as an NNN lease, the tenant is contractually obligated to pay for the increase in insurance premiums. A Triple Net lease is a commercial real estate agreement where the tenant agrees to pay all three primary property e....

Community Answers

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In a Triple Net lease, if a landlord increases the building's insurance coverage, which party is contractually obligated to pay for the resulting increase in premiums?

In a Triple Net lease, also known as an NNN lease, the tenant is contractually obligated to pay for the increase in insurance premiums. A Triple Net lease is a commercial real estate agreement where the tenant agrees to pay all three primary property e....

Community Answers