Tuesday at 2 with Chip is Wednesday at 2 today due to a distant and successful GAPIA seminar yesterday. Today I will go through three topics:
- The new Colorado law on loss-making cooperation requirements
- Understanding business term concepts
- Adjusting commercial receivables involving leases
Every commercial loss has the opportunity to lease. The leases can be of personal property and real estate. Every commercial adjustment should not only think about RTFP – Read the full policy, but also think about getting all the leases and then reading them regarding the insurance effects.
It is not easy to read leases. The terms and conditions of leasing agreements are not the same. The laws of the various states vary and affect clauses and leasing agreements. All of these clauses and rental laws can affect the payments that are required under property insurance.
Not much has been written about this important subject. This is one reason why I am starting a discussion about it. Adjusters cannot claim to be experts in commercial real estate insurance if they cannot master business breakdown and leasing adjustment concepts.
Adjusters International published an excellent article on the subject, Understanding Improvements and Improvements: Be Mindful of Lease and Insurance Provisions which I suggest you read before today's session at 1