What Landlords and Tenants Need to Know This Hurricane Season

Co-authored by: Scott Renaud, Chief Operating Officer, Foundry Commercial

With hurricane season officially underway as of June 1st, the National Oceanic and Atmospheric Administration is forecasting an above-average season, predicting up to 10 potential hurricanes. Even a single storm can cause significant disruption, so preparation is essential.

Lowndes and Foundry Commercial have partnered once again to share critical guidance for both landlords and tenants.

• Insurance
  
  Take a moment to pull together your certificates of insurance and confirm that any required coverage under the lease agreement is in effect, including naming appropriate parties as additional insured(s). For the tenant, don’t assume that the landlord’s insurance will cover your furniture, fixtures, or equipment. Most landlord coverages are for the building structure and the tenant bears responsibility for the personal property and any tenant-specific improvements located within the leased premises. Landlords and tenants should also be familiar with any provisions in the lease that specifically set forth procedures for the handling of insurance proceeds.
• Underinsurance
  
  One of the most overlooked but potentially devastating risks during hurricane season is underinsurance. As rebuilding costs in Florida continue to rise due to inflation, supply chain issues, and labor shortages, many commercial properties remain insured for outdated values, leaving significant gaps in coverage. This shortfall can lead to major financial setbacks following a catastrophic event, especially for the party with the rebuild obligation relying on insurance proceeds to fund repairs. Property owners and tenants should reassess their policies annually with their insurance brokers to ensure coverage limits align with current replacement costs.
• Casualty Provisions
  
  The casualty provision establishes each party’s respective responsibilities to repair damage to the leased premises and/or the building in which the same are located in the event of the full or, in some cases, partial destruction. This provision may also include provisions regarding the abatement of rent in the event of the prolonged loss of use of the leased premises.
• Utility Services Provision
  
  In the event of a loss of utility services to leased premises, this provision may provide for the abatement of rent until such time as service is restored; however, many such abatement rights are limited to loss of services caused by landlord and may not apply in the event of a hurricane.
• Maintenance and Repair
  
  Review the maintenance and repair provision of the lease to determine the parties’ respective obligations with respect to the leased premises and the systems serving the same. The responsible party should schedule pre-season and pre-storm check-ins with their critical vendor response team including restoration, roofing, general contracting, electrical and ground to name a few.
• Flood Insurance
  
  If a property is financed, lenders will require that their borrowers maintain flood insurance. Landlords and tenants occupying properties that are only partially located in a flood zone, even if not financed and required by a lender, should consider obtaining flood insurance due to the state's susceptibility to hurricanes and heavy rainfall. As Central Florida has experienced time and again—from the catastrophic flooding of the 1928 Okeechobee Hurricane to more recent events like the 2022 hurricane season and Hurricane Milton in 2024—flooding can cause severe damage to improved properties and personal belongings, leading to significant financial losses for both landlords and tenants. Flood insurance offers financial protection in the event of such disasters, ensuring that both parties can recover and rebuild efficiently.
• Access
  
  Collaborate with your landlord and your municipality to understand how post-storm access to the property and the region will be administered. Some municipalities will restrict access to essential personnel post-storm and pre-registering with them is a critical step.
• Technology
  
  Take precaution to keep your electronic assets protected from water damage as best you can. Any backups that may exist on property should be relocated somewhere safe. Anticipate power outages by having car chargers for your phone, extra portable chargers, and hard printing critical contacts in case of network outages.
• Force Majeure
  
  Many leases include a force majeure clause which may extend the time frame for satisfaction of an obligation in the event of a hurricane, tropical storm, or other severe weather event. If a deadline is looming for early September, landlords and tenants should determine whether force majeure may permit the extension or tolling of such deadline and comply with any related notice requirements.
• Safety
  
  Experience tells us that many of the personal injuries from hurricanes occur after the storm has passed. When returning to your property, please ensure you have the “all clear” from property management and bring professionals with you to keep you safe.

“When it comes to hurricanes, preparation is key—especially for tenants who rely on their office spaces to keep business running smoothly and for landlords who rely on the buildings to be operational and safe for their tenants,” said Scott Renaud, Chief Operating Officer at Foundry Commercial. “By planning ahead and understanding your building’s emergency protocols, you can minimize disruption and help to protect your employees, operations, and infrastructure. Our experience has shown us the value of having a solid contingency plan in place to help navigate uncertainty with greater confidence.”