Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Summary: Just as lessees of commercial property have a use interest in any building additions, alterations, or improvements made at their expense, a tenant of residential property has a similar interest. When a tenant invests in improvements in property leased as a residence and is able to use and enjoy the additions, all is well. But suppose a fire or other insurable cause of loss damages or destroys the improvements. Since the improvements belong to the landlord, the tenant has lost no property. However, the tenant has lost the use of the property, and it is the right to use the improvements for the term of the lease that creates the tenant’s insurable interest in them.

Improvements and betterments insurance as written for commercial risks is the subject of a separate discussion; see Improvements and Betterments Coverage. It should be noted that most residential forms do not include the adjustment procedure spelled out in commercial forms governing recovery when improvements are damaged but not repaired or replaced.

This premium content is locked for
FC&S Expert Coverage Interpretation subscribers.

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis

Already have an account?
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].

FC&S Editors


Get Answers Directly From the FC&S Experts

Submit your coverage interpretation question to the editors of FC&S for quick and reliable information.

Question of the Week

Insurance Coverage Q&A: Date of Loss or Date of Assessment ›

When loss assessment language refers to an event, is the event the date of loss, or the date of the assessment?

Question of the Week Archive ›

Copyright © 2024 ALM Global, LLC. All Rights Reserved.