Answer
Jun 24, 2024 - 08:06 AM
Haven’t heard of this before- that an insurance company would drop someone for having a tower on a 75-acre parcel. Seems like the agent doesn’t know what they are doing – or the insurance company has a unique policy relative to cell towers. All cell tower leases should require that the company constructing/operating the tower carry their own commercial general liability insurance for the tower – for at least $1M general liability. Some tower companies or carriers try to require that a landowner also insure the property in case there is damage done to the tower- we always recommend that the landowner delete this language. If you already have a commercial insurance policy- then it’s fine. But if the lessee wants you to add insurance to cover their tower, that’s a problem. (If they want the additional coverage, they can always reimburse you for it- above and beyond the normal rent).
Worst case, I suspect that you might have to switch insurers- but most companies won’t drop the landowner if a tower is built on the property, and which is insured by the lessee.
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