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.