This office lease provision states that the parties desire to allocate certain risks of personal injury, bodily injury or property damage, and risks of loss of real or personal property by reason of fire, explosion or other casualty, and to provide for the responsibility for insuring those risks permitted by law.
The New York Provision Allocation Risks and Setting Forth Insurance Obligations of Both the Landlord and the Tenant is a legal framework designed to outline the responsibilities, liabilities, and insurance requirements of both parties in a landlord-tenant relationship in New York. This comprehensive agreement is crucial in protecting the interests of both the landlord and the tenant, ensuring that potential risks and obligations are properly allocated. — Allocation Risks: There are various types of allocation risks covered under the New York Provision. Each allocation risk allocates the responsibility for potential damages or liabilities between the landlord and the tenant in different scenarios. Some key allocation risks include: 1. Property Damage: This allocation risk specifies the party responsible for damages caused to the property during the course of the tenancy. It outlines who should bear the financial burden of repairing or replacing property that has been damaged. 2. Personal Injury: This allocation risk defines the parties responsible for personal injuries sustained by the tenant or visitors while on the leased premises. It sets guidelines for handling medical expenses, legal liabilities, and insurance coverage. 3. Loss of Use: Loss of Use allocation risk deals with the responsibility for costs and expenses associated with a temporary displacement of the tenant due to property damage or repairs. It determines if the tenant should be compensated or provided alternative accommodation during such circumstances. 4. Natural Disasters: This allocation risk determines who is responsible for damages caused by natural disasters such as floods, earthquakes, or hurricanes. It defines the obligations of the landlord and the tenant concerning insurance coverage and repairs in the aftermath of such events. — Insurance Obligations: The New York Provision also clearly outlines the insurance obligations of both the landlord and the tenant to protect their respective interests. Some specific insurance obligations mentioned in the provision include: 1. Property Insurance: It stipulates that the landlord should maintain adequate property insurance coverage to protect against risks such as fire, theft, and other damages to the property's structure. The tenant might also be required to maintain renter's insurance to protect their personal belongings. 2. Liability Insurance: Both parties may have obligations to carry liability insurance coverage, protecting against claims and damages that may arise due to accidents or injuries on the property. 3. Additional Insured: The provision might require the landlord to be named as an additional insured party on the tenant's insurance policies, ensuring that the landlord is protected in case of any claims related to the tenant's actions or negligence. It is important to note that the specific allocation risks and insurance obligations can vary depending on the terms outlined in the lease agreement. The New York Provision provides a framework within which these risks and obligations can be customized to suit the unique circumstances of each landlord-tenant relationship.
