Specifies whether the landlord or tenant insures the physical building/improvements.
Also known as: Casualty Insurance
By Angel Campa, Founder · Updated March 2026
Property insurance responsibility determines who carries the financial risk of building damage from fire, storms, or other casualties. In gross leases, the landlord typically insures the building and passes the premium through as an operating expense. In NNN leases, the tenant may be directly responsible for the insurance premium. If the wrong party is identified as the insurer, there could be a coverage gap that leaves the building uninsured during a critical period.
Found in the "Insurance" section under "Property Insurance" or "Casualty Insurance." The lease should specify who maintains the policy, the coverage type (replacement cost vs. actual cash value), and which improvements are covered.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the property insurer from your lease PDF. The AI searches for the field name and common aliases like "Casualty Insurance" across all pages of the document, then assigns a confidence score based on OCR quality and extraction certainty. Fields with lower confidence are flagged for human review.
CGL Occurrence Limit
The minimum liability coverage required for a single incident.
CGL Aggregate Limit
The total maximum liability coverage required for the policy period.
Waiver of Subrogation
A mutual agreement preventing insurers from suing the other party to recoup losses.
Additional Insured
Requirement for the tenant to add the landlord to their liability policy.
Indemnification Scope
The extent to which the tenant holds the landlord harmless from liability claims.
In most leases, the landlord carries property insurance on the building structure and common areas. The cost is either included in gross rent or passed through as an operating expense in NNN leases. The tenant insures their own personal property, inventory, and tenant improvements.
Yes. Even when the landlord carries building insurance, the policy typically does not cover tenant improvements above a minimal threshold. Tenants should carry "betterments and improvements" coverage to protect their build-out investment in case of fire, flood, or other casualty events.
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