Building vs Fire Legal

A question came to us recently regarding a rental property:

Is Building Insurance the same as Fire & Legal Insurance?

The quick answer: No. Building insurance is not the same as Fire/Tenant Legal Liability.

“Fire (aka Tenant) legal liability” is a way to describe the risk that all persons, businesses, institutions, etc., are exposed to by way of responsibility for damage to property of others in their care, custody, or control. It requires special attention because forms providing property damage liability insurance—for example, the commercial general liability (CGL) form—usually do not apply to the exposure of property damage to personal property in the care, custody, or control of the insured.

If you have even one rental property, it’s best to talk to your insurance advisor about the correct coverages to protect your interests, both physical and fiduciary. On the flip-side, if you are the tenant of a property, make sure to discuss your rental situation with your advisor to make sure all angles of liability are covered as well.