The owner or owner of the property is responsible for providing the Building Insurance, and requires a specific addition to the Garage Building Insurance – Owners Legal Liability Insurance. Owner is fully responsible for all garages even though he only has access to 1 of them himself. It’s rare, but on some occasions the outright owner of the property may not have access to any of the garages, but even then he would still have to provide insurance on behalf of the renter.
The agreement/lease is usually a 999 year Peppercorn lease, and it is usually specified in the deed that no ground rent is paid. The Owner may request a nominal contribution to the cost of the Garage Buildings Insurance if he so desires. Typically, this would total around 20% of the total building insurance costs across all tenants. For example: If there were 2 garages leased, the owner could request 10% of the total garage building insurance costs from each tenant, adding up to a 20% contribution. The percentage a homeowner can ask for can vary slightly, but around 20% would be the norm. The homeowner should also be careful to eliminate additional insurance costs when calculating this contribution, such as the homeowner not including their own contents insurance costs or Home Emergency Coverage, but remember to include costs such as Property Tax. insurance premium (IPT) which is 6%. The policy provider will be able to help the policyholder itemize these costs.
Garages also need specific garage contents insurance, and this is something that many people overlook, assuming they can have any contents insurance, flat insurance is the most common mistake. This is not the case. If a renter started a fire that destroyed the building and contents, the insurer would not pay to replace the contents of a garage if the policy is for an apartment. A building and contents garage insurance policy allows for events insured by a renter; non-garage policies do not allow it.
It is also beneficial to insure the contents and the buildings on a single policy; this would avoid 2 insurers, 2 claims and 2 policy excesses in most claim scenarios. Most fires damage the building and contents, most burglaries involve damage to the building as well as theft or damage to contents, leaking water can destroy carpets (contents insurance) and knock down ceilings.