DEFINITION of 'Betterment Insurance'

Betterment insurance refers to insurance coverage that a tenant in a rental property carries to cover any additions or modifications to the leased space that are made to fit his or her, or a business's, particular needs. The property owner typically holds an insurance policy to cover the structure; the tenant procures a policy to cover any improvements made to the property.

BREAKING DOWN 'Betterment Insurance'

Betterment insurance policies cover improvements made by a tenant to a rented property, and most often refer to commercial properties. For example, a company may rent a commercial property to house its offices. The property owner holds an insurance policy on the structure. The company renting the building purchases a betterment insurance policy to protect any improvements or additions to the property, including shelving, equipment, desks, computers, etc.

RELATED TERMS
  1. Gross Lease

    A type of commercial lease where the landlord pays for the building's ...
  2. Total Insurable Value

    Total insurable value is the value of property, inventory, equipment, ...
  3. Commercial Property Insurance

    Insurance that is used to cover any type of commercial property. ...
  4. Property Insurance

    A policy that provides financial reimbursement to the owner or ...
  5. Modified Gross Lease

    A type of real estate rental agreement where the tenant pays ...
  6. Cover Note

    A temporary document issued by an insurance company that provides ...
Related Articles
  1. Insurance

    A Quick Guide To Landlord Insurance

    ...And why landlords need it, even if they also have homeowners insurance.
  2. Investing

    Tips For The Prospective Landlord

    Investing in rental property can generate serious income, but there's more to it than collecting rent.
  3. Insurance

    The Importance Of Property Insurance

    Property insurance is important, but there's a lot you need to learn in order to get the proper coverage.
  4. Insurance

    What Is and Isn't Covered by Homeowners Insurance

    Understanding what your insurance covers can be confusing. Learn what almost all insurance policies have in common so you're prepared if disaster strikes.
  5. Investing

    Top 10 Features Of A Profitable Rental Property

    Owning rental property is a tough business. Here are 10 things you should consider before investing in an income property.
  6. Investing

    Top 10 Features of a Profitable Rental Property

    Looking to purchase a rental property? These are the factors that should be considered for income-producing real estate.
RELATED FAQS
  1. Which insurance policies do I really need?

    Your needs for insurance depend on your situation and can't be generalized for everyone, but there are a lot of options available. ... Read Answer >>
Hot Definitions
  1. Restricted Stock Unit

    Compensation offered by an employer to an employee in the form of company stock. The employee does not receive the stock ...
  2. Operating Ratio

    A ratio that shows the efficiency of a company's management by comparing operating expense to net sales. Calculated as:
  3. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  4. Pro Forma

    A Latin term meaning "for the sake of form". In the investing world, it describes a method of calculating financial results ...
  5. Trumpcare

    The American Health Care Act, also known as Trumpcare and Ryancare, is the Republican proposal to replace Obamacare.
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center