When you lease commercial space in Buford, GA, understanding how your tenant improvements and betterments are protected becomes crucial for your business operations. Town & Country Insurance helps business owners navigate the complexities of commercial property coverage, particularly when it comes to the custom modifications and enhancements you make to your rented space.

What Are Tenant Improvements and Betterments?

Tenant improvements and betterments refer to any alterations, installations, or additions you make to a leased property that enhance its value or functionality for your business. These modifications include custom flooring, built-in shelving, specialized lighting, upgraded HVAC systems, or interior walls you install. Essentially, any permanent change that becomes part of the building structure falls into this category. The key distinction is that these improvements typically cannot be removed when you vacate the premises.

Coverage Under Commercial Property Policies

Most commercial property insurance policies include coverage for tenant improvements and betterments as part of your business personal property coverage. However, the coverage amount may be limited unless specifically scheduled. The insurance typically covers these improvements at their actual cash value, which factors in depreciation. For full replacement cost coverage, you may need to purchase additional coverage or endorsements to ensure adequate protection.

Protecting Your Investment

To properly protect your tenant improvements, maintain detailed records of all modifications including receipts, photos, and contractor agreements. Work with your landlord to understand who’s responsible for what improvements under your lease agreement. Consider scheduling high-value improvements separately to ensure full coverage.

Understanding tenant improvement coverage helps safeguard your business investment in leased spaces. For comprehensive commercial property insurance in and around Buford, GA, Town & Country Insurance provides tailored coverage solutions that protect your improvements. Give us a call today.