Lease Agreement Fire
Recently, a fire in Florida destroyed eight units and evicted 30 tenants. The property management group has transferred clients to available empty units, but now asks them to sign or withdraw a new lease. Tenants are angry and looking for legal action. This raises the question: What are the rights and obligations of landlords and tenants after a rental unit has been damaged by fire? Your rental agreement should also include a clause that will immediately cancel the contract if the house becomes uninhabitable for any reason, so you are not required to pay a tenant`s moving costs. You can also add a clause that makes tenants responsible for paying the deductible if they are responsible for the fire or smoke. The answer varies depending on location and insurance policies. For example, Massachusetts requires all building owners and owners to support insurance for each additional unit rental, which guarantees up to 750 $US for tenants relocated due to a fire. You should check the laws of your state and know the responsibility you must assume to your property and the tenant. What is the purpose of the insurance clause in a lease? This clause defines each party`s rights and obligations with respect to insurance for leased premises and the contractor`s activity. It identifies who must purchase the insurance, what coverage is needed to support the limits of the insurance and each party has the right to give up the bid for the losses or not.
Responsibility for fire damage, also known as rental property damage or fire safety liability, is an important provision under a General Commercial Responsibility Directive (LMC) when a company leases either the building or a sub-local within a building. It covers property damage caused by fire in premises rented or rented as a result of the insured`s negligence. Regular verification of leases is an important part of risk management, so make sure you make these documents available to your agent.