Tenant's new insurance requires inspections and updates who pays?

[Noel Tijerino]

My long-term tenant switched to a new insurance company for his business, which is in my very old building. The new insurance company wants electrical and plumbing inspected and updated if needed. This is the first time this has come up for me, so I have no experience with this. Who pays for the inspections? Who pays for the updates if needed? I'm in California, which, I assume means I pay, but I'm hoping.

[Ryan Thomas]

@Noel Tijerino

Hey Noel, I’m a commercial insurance broker. The inspection has already been paid as part of a fee in the policy. I’m assuming this is a triple net lease? Since you are the owner of the building, you would pay for the updates.

What I’ve done...(depending on how costly and unreasonable the updates are) is switch insurance carriers midterm. They will inevitably inspect but you might get a more lenient inspector. This all depends on what they require and would be used as a last resort. Let me know if you have any questions!