Water Related Damage

As an example, let’s discuss an art gallery’s insurance program.

An art gallery owner (named Ray) rents space directly from the building owner, there is no management company or sales office. The building owner/landlord is a shrewd businessperson, making life difficult for the tenants working and residing in the building. Before signing the lease, the art gallery owner knew that the landlord was ‘difficult,’ but the rent was cheap and the location was amazing. The owner of the art gallery thought the demeanor of the building owner was manageable considering the proposed amenities seemingly outweighed any negatives.

Fast forward 11 months later and 5 or 6 fresh water spots on the ceiling of the art gallery from what appears to be a leak of some kind. After seeing the damage on a regular basis, the art gallery owner gets fed up. The landlord wasn’t actively making life troublesome for its tenants, but doing so in a passive manner through a complete dereliction of duty. So, the art gallery calls their insurance agency to submit a claim. The art gallery purposely spends a little more on insurance than most just to make sure they have all their bases ‘covered,’ and to all but guarantee