PROTECTION IS AVAILABLE FOR TENANTS AND THEIR LEADERS?
LEASEHOLD ENDORSEMENTS An available but often overlooked title insurance coverage is protection for tenants and their lenders. This coverage is available through special endorsements to both the Owner Policy of Title Insurance and the Mortgagee Policy of Title Insurance. BUT MY LANDLORD HAS AN OWNERS TITLE POLICY OF TITLE INSURANCE… This may be true, but the title insurance protection applies to the named insured – the owner – not to his tenants. In the case of a covered title defect serious enough to cause you to be evicted from all or part of the leased premises, your only remedies would be a lawsuit under the lease or expensive business interruption insurance. Also, a lender to a tenant for the tenant’s improvements would have a lien on property to which title may have been lost.
