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Multiple factors are often involved in the analysis and determination of ownership interests and insurance obligations for tenant improvements and betterments, furniture, fixtures and equipment, and other “personal property” within leased premises. In the event of a loss ' be it property damage or total destruction ' landlords, tenants and their respective property insurers must consider both the tenant's and the landlord's obligations under any lease in effect at the time of a loss, and the coverage provided by both parties' insurance. In the event of conflicting or unclear language in these contracts ' which is not an unusual scenario ' there is often a dispute as to which party is economically responsible for damaged or destroyed property. Additionally, the interpretation and application of the relevant lease terms and insurance policies can often vary by jurisdiction. It is, therefore, vital to identify the contractual duties of the landlord, the tenant(s), and the insurers to avoid losses or payments that exceed one's actual obligations.
The Language in the Lease
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