# Glossary of Single-Tenant Property Insurance Terms

Source: https://www.creshield.com/glossary
By Brad Cottam, CRE Shield (licensed in Kansas and Texas). Updated 2026-10-28.

Short, plain definitions of the terms that come up when you own, lease or insure a single-tenant commercial building. See the [complete guide to single-tenant property insurance](/resources/single-tenant-property-insurance-guide) for how they fit together.

### Absolute net lease
A lease in which the tenant pays essentially all costs of the property, including taxes, insurance, maintenance and often structural repairs and the roof. Definitions vary, so read the lease.

### ACORD 25
The standard certificate of liability insurance. It lists general liability, umbrella, auto and workers' compensation policies. It is informational and does not change the policy.

### ACORD 28
The standard evidence of commercial property insurance. It shows property coverage on a building, the insured, and any mortgagee or loss payee. Lenders usually ask for it.

### Actual cash value (ACV)
What property is worth after depreciation. A policy that pays ACV pays less than the cost to replace the item new. Roofs are often settled on ACV.

### Additional insured
A party added to a liability policy by endorsement who receives coverage rights under it. Landlords are usually additional insureds on a tenant's liability policy.

### Blanket policy
One policy covering several buildings or locations, often with a shared limit. It returns one premium unless the carrier also provides a rating by location.

### Business income (rental value)
Coverage that replaces lost income, including a landlord's rent, while a covered loss keeps a building from operating or being rented.

### CAM (common area maintenance)
Charges for maintaining shared areas, passed through to tenants in multi-tenant properties. Insurance is sometimes billed alongside CAM.

### Certificate holder
A party that receives a copy of a certificate of insurance. A certificate holder has no coverage rights under the policy.

### Certificate of insurance (COI)
A document summarizing coverage as of the day it was issued. It does not amend, extend or alter the policy.

### Coinsurance
A policy condition that reduces a claim payment if the building is insured for less than a required percentage of its value.

### Declarations page
The summary page of a policy showing the insured, coverages, limits, deductibles and premium.

### Double net (NN) lease
A lease in which the tenant pays two of the three nets, commonly property taxes and insurance, while the landlord handles structure and roof. Definitions vary by lease.

### Force-placed insurance
Coverage bought by a landlord or lender, and charged to the tenant or borrower, when required insurance lapses. It is usually narrower and more expensive than a normal policy.

### Gross lease
A lease in which the landlord pays property expenses, including insurance, from the rent.

### Ground lease
A lease of land to a tenant who owns or builds the improvements on it. The ground tenant usually insures the building.

### Insured value
The amount of property coverage on a building, normally based on replacement cost.

### Landlord's liability (lessor's risk) policy
A liability policy written for an owner who leases a building to others, covering the owner's own exposure.

### Loss payee
A party that receives claim payments for damage to property as its interest appears, such as a lender or ground lessor.

### Mortgagee
A lender with a mortgage on the property, named on the property policy so it is paid on a building loss and notified of cancellation.

### Named insured
The party the policy is issued to. For an owner, this is typically the entity that owns the building.

### Net lease (NNN)
A lease in which the tenant pays property taxes, insurance and maintenance in addition to rent. In a triple net (NNN) lease the tenant typically pays all three.

### Ordinance or law coverage
Coverage for the extra cost of rebuilding to current building codes after a covered loss.

### Policy year
The period a policy covers, set by the carrier. It often differs from the lease year and the accounting year.

### Pro rata
Divided in proportion, for example by days for a partial period or by insured value across buildings.

### Replacement cost
The cost to rebuild or replace property with similar materials, without deduction for depreciation.

### Reconciliation (true-up)
The year-end comparison of estimated payments to actual costs, with a refund or additional bill for the difference.

### Rent abatement
A lease provision reducing or suspending rent while a building cannot be used after a loss.

### Total insured value (TIV)
The total value insured across a building or schedule, including building, contents and business income.

### Umbrella (excess) liability
Extra liability limits above a primary liability policy.

### Vacancy provision
A policy condition limiting coverage when a building is vacant. Many policies treat a building as vacant unless a minimum share of its space is rented and used, often 31%, and restrict coverage after about 60 days.

### Waiver of subrogation
An agreement by an insurer not to pursue the other party for amounts it paid, often required between landlord and tenant by the lease.

### Wind and hail deductible
A separate deductible for wind or hail losses, often a percentage of the building's insured value.

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*This glossary is general education, not insurance or legal advice. Definitions vary by lease and policy.*