Coverage type
Identify the policies and coverage types included in the billed amount.
Check: Policy schedule · lease insurance clause
NNN insurance review
Know which coverage your lease addresses.
Insurance can appear as a separate NNN line or within an annual reconciliation. The lease and policy records determine which premiums may be passed through and how your share is calculated.
At a glance
01
Coverage type
Identify the policies and coverage types included in the billed amount.
02
Property covered
Check whether the premium relates to the property or expense pool named in the agreement.
03
Allocation and fees
Compare the tenant share and any added fee with lease provisions.
The signed lease, annual statement, and available records determine what can be verified.
A practical review
Four questions behind an insurance line.
A premium increase is not automatically wrong. Ask for enough detail to identify the policy, period, allocation, and any credits.
Property covered
Check whether the premium relates to the property or expense pool named in the agreement.
Check: Declarations · building schedule
Allocation and fees
Compare the tenant share and any added fee with lease provisions.
Check: Share worksheet · fee clause
Year and credits
Match policy periods, annual charges, estimates, and any refunds or credits.
Check: Premium invoices · reconciliation
An illustrative example
A new policy line needs an explanation.
Suppose the statement includes an umbrella policy that did not appear separately last year. Determine whether it was newly purchased, previously bundled, or allocated differently, then read the lease's insurance definition.
Illustrative only. The new line may be allowed, a reclassification, or a billing issue.
Illustrative review worksheet
Statement
New umbrella-policy line appears.
Lease question
Does the agreement include this coverage in pass-through expenses?
Records
Policy schedule, premium invoice, allocation worksheet.
Next step
Compare the actual coverage and property with the lease.
Go one step deeper
Check the share used for this cost pool.
An insurance charge can use a different allocation from CAM. Verify the percentage against the applicable lease language.
Related guides
Keep the document trail together.
NNN property taxes
Review another common pass-through.
Read the guide ↗NNN audit rights
Find the records-access procedure.
Read the guide ↗Expense caps
Read which categories a limit covers.
Read the guide ↗Common questions
What the documents can tell you.
Does a premium increase prove an overcharge?
No. Compare the policy, period, allocation, lease permissions, and any credits.
Can insurance be billed in more than one line?
It may appear in different statement categories. Check for overlap with the policy and expense detail rather than assuming duplication.
Does a flagged item prove an overcharge?
No. It is a question to verify against the signed lease, the annual statement, and supporting records. A charge can be valid even when it warrants review.
Is there a standard audit deadline?
No. Read the signed lease and amendments for the trigger, period, required action, recipient, and delivery method. Different review steps may have different rules.
Your next step
Start with your own lease language.
Upload a readable signed lease for a free preview. Add an annual CAM or NNN statement if you have one, then decide whether a full report would help organize your questions.