Homeowners Insurance Requirements
Lessee shall, at Lessee’s own expense, keep all Improvements continuously insured against loss or damage by fire and the extended coverage hazards for the full replacement value of such Improvements. From time to time Lessor may specify a reasonable minimum amount for such coverage, but Lessee shall be solely responsible to increase the coverage from time to time to keep such coverage at full replacement value.
Lessee shall, at Lessee’s sole expense, maintain continuously in effect comprehensive general liability insurance covering the Leased Premises and it appurtenances in the amounts of not less than $250,000.00 for injury to or death of any one person; and $300,000.00 for injury to or death of any number of persons in one occurrence; and $75,000.00 for property damage. The dollar amount of each such coverage shall be adjusted at least every two (2) years (beginning the date this Lease is signed) or upon Lessor’s demand given not more often than annually, upon 30 days notice to Lessee. This adjustment shall be equal to the percentage of change (positive or negative) over the period since the last adjustment in the Consumer Price Index for urban wage earners and clerical workers, US Cities Average or such other index as may be designated by Lessor that reasonably measures adjustments in coverage amounts for the applicable type of insurance.
Such insurance shall specifically insure Lessee against all liability assumed hereunder, as well as all liability imposed by law, and shall also insure Lessor as an additional named insured so as to create the same liability on the part of insurer as though separate policies had been written for Lessor and Lessee.
Lessee shall provide Lessor with copies of all policies and renewals of policies. All policies shall also contain endorsements providing that they shall not be cancelled, reduced in amount or coverage or otherwise modified by the insurance carrier in involved without not less than thirty (30) days prior written notice being given to Lessor. Lessor shall be entitled to participate in the settlement or adjustment of any losses covered by such policies of insurance. This document needs to be provided to First Homes before or at the date of closing.
First Homes Properties
400 South Broadway, Suite 300
Rochester, MN 55904