Lease Incentive Insurance – As Good as it Sounds
In a previous post we described how ‘bolting on’ a separate Rent Default policy can provide Property Owners with that extra security should a tenant fail to make their rental payments. This insurance product is great for bridging the gap in terms of lost rent, but what’s available to attract new tenants should a catastrophic event occur?
Lease Incentives can be built into an insurance policy to assist Property Owners in enticing existing and prospective tenants, to bring them into the building following a major loss (such as a fire).
Examples of incentives which are included in a policy are:
Limits of insurance and amount of incentives available can be selected by the Property Owner, guided by the advice of KBI and the Insurer. The typical period for this cover is for 6 months immediately following complete reinstatement of the insured property.
Packaging Lease Incentives and Rent Default cover together as part of a Commercial Property Insurance Policy provides the Property Owner with comprehensive protection – even in these uncertain times.
