Lease Insurance Law and Legal Definition

Lease insurance is a type of insurance to provide protection to a leaseholder. This type of insurance is mainly used to indemnify the leaseholder for the loss caused due to the termination of lease where the termination is the result of any damage to the property from any peril covered under the policy. In case of any loss to a property insured under the lease insurance policy, the amount to be paid is the difference between the rent and the actual rental value of the property multiplied by the remaining term of the lease.