Leasehold Interest Coverage

Leasehold Interest insurance provides coverage for a tenant in the event his or her lease is terminated. The lease may be terminated due to (1) a clause in the lease specifying that the lease is terminated in the event of property damage causing the premises to be unavailable for tenancy; or (2) condemnation of the leased premises. It is a form of time element” coverage that serves to provide coverage for the difference between the old rental and a new; likely more expensive rental.”

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