How The Events Of 9/11 Have Affected Lease Rent Abatements
- Topics:
- Property,
- Strategic Leasing
- Tags:
- 9/11 Commission,
- Business Operations,
- Corporate Insurance,
- Finance,
- Financial Planning,
- Insurance
- Source:
- Reed Elsevier
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Overview: As the economic reverberations of the September 11, 2001 terrorist attacks continue to resound, the impact of the day's events upon traditional lease provisions are beginning to dramatically unfold. In response to the attack, most commercial insurance carriers reacted by limiting or excluding terrorism coverage in their commercial property insurance policies. As a result, certain risks previously absorbed by insurance under traditional leasing practice must now be reconsidered. Although most rent insurance endorsements previously afforded landlords the coverage they needed to grant tenants an abatement of rent, the response by insurance companies to "9/11" with respect to acts of terrorism may now create a gap in essential coverage. In order to prevent such a dilemma, landlords and tenants are well advised to review their leases and examine the insurance coverages they maintain. It is equally important to investigate what insurance coverage is now available when negotiating abatement provisions in leases.
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Format: HTML | Date: Oct 2003 | Pages: 1
