Improvements And Betterments
What Does Improvements And Betterments Mean?
Improvements and betterments refer to upgrades, additions, and modifications made by a tenant to a property they do not own. These changes can increase the property’s value. However, in the context of insurance, coverage for such improvements varies from policy to policy. Therefore, it is important for both the landlord and tenant to understand what the specific property policy covers.
Insuranceopedia Explains Improvements And Betterments
Problems can arise if both the landlord and tenant assume the other is responsible for covering improvements and betterments. For example, a tenant may install new glass walls and light fixtures that increase the property’s value by $20,000. If both parties mistakenly believe the other has insured these upgrades, and neither actually does, the tenant could lose the $20,000 if the building is destroyed in a fire. Betterment and improvement insurance provides coverage for such situations.
