Does General Liability Cover Damage to Rented Property or Premises?

CGL policies commonly restrict coverage for damage to property the insured owns, rents, occupies, or has in its care. The ISO specimen makes a limited exception for certain damage, other than fire, to premises rented for seven or fewer consecutive days and applies a separate limit. It also treats fire damage to rented premises under a different exception structure. These details explain why the phrase “fire legal liability” or a general liability limit may not tell you the full amount available for damage to a leased space.

Coverage depends on the lease terms, who is legally liable, the cause of damage, how long the premises were rented, and the endorsements attached. Compare the quote’s damage-to-premises-rented limit with the lease requirement and inspect the property, contractual-liability, and fire provisions. Do not assume CGL insures your own tenant improvements or contents; those may require commercial property coverage.