Legal Question in Business Law in Georgia
Who pays for building insurance? tenant or owner?
I am looking into signing a lease for a space to open a restaurant. I am aware that I need insurance on my actual business. But the landlord wants me to carry an $800,000 policy for the acutal building with his name on the building part. Is this normal business practice? Everyone I've spoke with (other business owners) say it's not normal and that it's his responsibility to carry insurance on the building. By the way, the building is no where near worth $800,000.
Thanks in advance.
2 Answers from Attorneys
Re: Who pays for building insurance? tenant or owner?
While is no exact standard for lease agreements, it is somewhat common for the tenant to carry certain amounts of insurance. If you don't agree with the insurance requirements, you should negotiate them out of the lease.
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Re: Who pays for building insurance? tenant or owner?
Where it is "normal," or what other people say, is not relevant. You can accept and agree to the terms of the lease, negotiate with the landlord, or find new space where the terms of the lease are acceptable to you.
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