Published: | Updated: September 2, 2017

Definition - What does Leasehold mean?

A leasehold is an asset, such as an apartment, that is owned by one party but held by another through a lease.

Leasehold insurance exists to protect policyholders in the event that their leasehold is cancelled.

Insuranceopedia explains Leasehold

A leasehold could be cancelled if, for example, an apartment or commercial building burns down. In such a circumstance, an entirely new building would have to be constructed and rent prices in the new building could be much higher. The previously agreed-upon rent amounts in the lease would be voided and a new one would have to be drafted for the buildings and its occupants.

Leasehold insurance would provide coverage for losses resulting from such an incident.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this: