Liability · Insurance Term
Damage to Premises Rented to You (Fire Legal Liability)
Definition
Damage to premises rented to you is a part of general liability coverage. It pays when you are legally responsible for damage to space you rent from someone else, most often by fire. It protects a tenant against the landlord's claim, and its limit is usually far lower than the policy's main occurrence limit.
In Plain English
A standard commercial general liability policy generally excludes damage to property you rent. It then makes an exception for fire damage to premises rented to you, and for other damage to space rented for a short stay. The separate limit on the declarations, often $100,000, is the most that will be paid.
For owners, this works in two directions. When you are the landlord, a tenant's limit may be far too small to pay for a fire they cause in your building. That is one reason owners insure the building on their own property policy and use lease terms or a waiver of subrogation to sort out who pays.
When you are the tenant, for example if your management company leases office space, check whether your lease makes you responsible for the building. A modest limit may not come close to the cost of a serious fire.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical and simplified: A restaurant tenant's kitchen fire causes $400,000 of damage to a strip center. The tenant's general liability policy has a $100,000 damage-to-premises-rented limit. The landlord's property insurer may pay the building loss and could then seek repayment from the tenant, unless the lease includes a waiver of subrogation.
What to Watch For
- As a landlord, don't rely on a tenant's limit; insure the building on your own property policy.
- As a tenant, compare this limit with your lease obligations and ask about a higher limit.
- Check whether your lease calls for mutual waivers of subrogation.
- In a triple net lease, confirm who insures the building and who pays the deductible.
Last updated October 14, 2026 · Primesure editorial team · How We Write