Fire Damage Legal Liability is a General Liability coverage that is important for sports organizations that lease or rent buildings from a landlord. This coverage is also known as “Damage To Premises.”
This coverage applies in the event that the sports organization’s negligence results in damage to rented premises, by fire or otherwise, and it is sued for damages.
Typical limits for Fire Damage Legal Liability are either $100,000 or $300,00 depending on the carrier.
In the event that the replacement cost value of the building that is leased exceeds the Fire Damage Legal Liability limit, you should either increase your limit or should attempt to negotiate a joint waiver of subrogation provisions to your lease agreement.
Under a joint waiver of subrogation provision, both the landlord and tenant (sports organization) agree that each will rely on their own property insurance to cover their respective property losses and that each will waive the subrogation rights of their property insurance carrier to recoup its claim payment loss via lawsuit against the negligent party who caused the loss.
Source: John Sadler
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