Fire Damage Limit

The fire damage limit, formally known as damage to premises rented to you, covers the insured's liability for fire damage to leased or temporarily occupied spaces. Standard CGL policies typically include this coverage at limits ranging from $50,000 to $300,000, though higher limits are available by endorsement.

In COI compliance for commercial real estate, the fire damage limit is particularly relevant for tenant certificates. Landlords typically require tenants to carry fire damage coverage at limits sufficient to cover the leased space's value. This coverage responds when a tenant's negligence causes fire damage to the landlord's property.

Compliance teams should verify fire damage limits match lease requirements, which often specify amounts ranging from $100,000 to $1,000,000 depending on the property. Certificates showing only the standard $50,000 or $100,000 may fall short of contractual requirements, creating a compliance deficiency that requires the tenant to obtain a coverage enhancement.