What I’m about to share with you might come as a surprise. Are you aware that the large insurance companies got together a few years ago and decided as a group not to offer notice of cancellation policies to landlords? Well, that’s not 100% true – you can get it, but it’s cost prohibitive. I can see why this would benefit the insurance companies, but where does that lease all the leases that state that the tenant will have its carrier provide such a notice? Does this put them at risk of being in default of their lease, even though it’s something they have no control over?
The insurance carriers suggest that the tenant can provide the notice rather than the carrier provide is, which is how we’ve gotten around this issue. That being said, we continue to see this clause in every lease, so I suspect we aren’t the only ones who didn’t know. Beware: you can’t promise something you can’t provide!