Leasehold Interest Coverage
Insurance that provides coverage for a tenant in the event his or her lease is terminated. The lease may be terminated due to (1) a clause in the lease specifying that the lease is terminated in the event of property damage causing the premises to be unavailable for tenancy, or (2) condemnation of the leased premises. It is a form of “time element” coverage that serves to provide coverage for the difference between the old rental and a new, likely more expensive rental.
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