[RPPTL Leasing Committee] Self-Insurance for Windstorm
RPPTL Real Estate Leasing Committee
landten at lists.flabarrpptl.org
Mon Sep 18 10:08:44 PDT 2023
Good afternoon Lee. My company ran into that situation with a few very large, well-financed retailer in a ground lease. Our leases were with the corporate parent companies, not SPE affiliates. The compromise for casualty insurance coverage was that the tenant had to maintain an agreed upon value of liquid cash assets and an overall minimum net worth, as verified in its certified quarterly financial reports. In another scenario, we had a well-financed tenant agree to the letter of credit scenario you mentioned below.
Take care,
Ben Wilson
Benjamin E. Wilson, Esq.
Associate Corporate Counsel
The Viera Company
7380 Murrell Road, Suite 201
Viera, FL 32940
(321) 242-1200, Ext. 4501
Email: benjamin.wilson at viera.com<mailto:benjamin.wilson at viera.com>
From: landten-bounces at lists.flabarrpptl.org <landten-bounces at lists.flabarrpptl.org> On Behalf Of RPPTL Real Estate Leasing Committee
Sent: Monday, September 18, 2023 9:46 AM
To: landten at lists.flabarrpptl.org
Subject: [RPPTL Leasing Committee] Self-Insurance for Windstorm
Need some creative input. Have a commercial Landlord whose leases require windstorm insurance. Tenant (multiple locations with Landlord) is trying to self-insure for windstorm due to the high premiums; however, the Leases do not provide the
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Need some creative input.
Have a commercial Landlord whose leases require windstorm insurance.
Tenant (multiple locations with Landlord) is trying to self-insure for windstorm due to the high premiums; however, the Leases do not provide the Tenant the right to self-insure. The Leases state that if Tenant fails to obtain insurance, Landlord has the right to place the insurance and charge back Tenant, or declare a default.
The Landlord and Tenant have had a long relationship and wanted to get creative in alternative ways to meeting the insurance requirement (i.e. Standby Letter of Credit); however, I wanted to know if anyone else is running into this issue and what ways they see of solving.
As a side fact, the Guarantor of the Lease is financially significant (if that provides an alternative). Each of the LLC Tenants are separate and distinct entities under the umbrella of the Guarantor.
Thanx for any input.
Les H. Stevens, Esquire
Les H. Stevens, P.A.
5301 North Federal Highway
Suite 130
Boca Raton, Florida 33487
Tel: 561-989-9797
Fax: 561-989-8484
E-Mail: lesstevens at earthlink.net<mailto:lesstevens at earthlink.net>
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