INSURANCE NEWS & INSIGHTS

Illinois landlord-tenant laws and local housing codes place responsibilities on landlords regarding rental-property conditions. The Illinois Attorney General explains that landlords must generally: Keep rental units fit to live in Make necessary repairs Comply with applicable state and local health and housing codes Local municipalities may impose additional requirements. Read more:Illinois Attorney General — Landlord…

Illinois law requires smoke detectors in residential dwelling units. Among other requirements, smoke detectors must generally be installed within 15 feet of rooms used for sleeping. Single-family residences must also have at least one approved smoke detector on every story, including basements, subject to statutory requirements. The property owner is responsible for supplying and installing…

Illinois also requires qualifying residential dwelling units to have approved carbon monoxide alarms. Generally, at least one approved carbon monoxide alarm must be installed within: 15 feet of every room used for sleeping The owner is responsible for supplying and installing required alarms. Tenants generally have responsibilities for testing, routine maintenance, battery replacement, and notifying…

Buildings containing multiple residential units or mixed residential/commercial use create additional exposures. Property owners should review: Building coverage General Liability Loss of Rents Business Income Ordinance or Law Equipment Breakdown Water Backup Building Glass Crime Cyber coverage Umbrella Liability Workers' Compensation when employees are involved Residential and commercial portions of a mixed-use building should be…

Commercial property insurance can protect qualifying buildings such as: Office buildings Retail buildings Shopping plazas Warehouses Industrial buildings Medical offices Restaurants Mixed-use properties Apartment buildings Multi-family properties Student housing Commercial condominium units Coverage should reflect the actual occupancy and property use.

Insurance companies distinguish between: Owner-Occupied Property The building owner operates their own business from the property. Tenant-Occupied Property The building is leased to another business. Mixed Occupancy Part of the property is owner-occupied and part is leased. These exposures can be rated differently. Always disclose all tenants and their business operations.

For commercial property insurance, the type of tenant is important. A building rented to an accounting office may present a different risk from a building rented to: Restaurant Bar Auto repair shop Contractor Manufacturing company Daycare Medical office Warehouse Cannabis-related operation Beauty or wellness business Insurance companies evaluate the hazards created by the actual occupancy.…

Commercial leases often contain detailed insurance requirements. A lease may require the tenant to carry: Commercial General Liability Business Personal Property Workers' Compensation Commercial Auto Umbrella Liability Property insurance Business Income Other coverage A landlord may also require: Additional Insured status Waiver of Subrogation Primary & Noncontributory wording Specific liability limits Certificate of Insurance Before…

Commercial landlords often request a Certificate of Insurance from tenants. A Certificate of Insurance provides evidence of coverage at the time it is issued. It does not replace the insurance policy and does not automatically grant all contractual insurance rights. For example, if a lease requires the landlord to be an: Additional Insured the applicable…

Commercial and rental property should generally not be insured simply according to its purchase price or market value. Insurance companies commonly calculate reconstruction cost based on factors such as: Building square footage Construction type Number of stories Building materials Roof type Building age Local labor costs Local material costs Building features Occupancy Market Value ?…