What Does Improvements and Betterments Mean?
Improvements and betterments are upgrades, additions, and modifications that a tenant makes to a property that they do not own. These set of changes can raise the value of the property. However, in the context of insurance, coverage for them can vary from policy to policy. So, it is up to the landlord and the tenant to understand what the particular property policy covers.
Insuranceopedia Explains Improvements and Betterments
Problems can arise if a landlord and a tenant both think the other party is covering improvements and betterments. For example, a tenant may put in new glass walls and light fixtures that improve the value of the property by $20,000. Yet if both the tenant and the landlord think that the other party has these changes covered, and neither actually does, then the tenant could be out $20,000 if the building is destroyed in a fire, for instance. Betterment and improvement insurance provides insurance coverage for such situations.