Common use of LIABILITY INSURANCE AND THE PERMITTED MORTGAGEE Clause in Contracts

LIABILITY INSURANCE AND THE PERMITTED MORTGAGEE. Section 7.5 requires the Lessee to carry comprehensive hazard, casualty and liability insurance for the full replacement value of the property. The Lessee’s Permitted Mortgagee shall be named as an additional insured, as shall the Lessor. The insurance policy may provide, at the election of the Permitted Mortgagee, that in the event of casualty, proceeds from such policy shall be first paid to the Permitted Mortgagee. Such insurance policies shall provide that the same may not be cancelled or coverage reduced without prior written notice to the Lessor and the Permitted Mortgagee. If the Lessee shall elect not to renew the insurance policy, Lessee shall send Lessor and Permitted Mortgagee written notice at least thirty (30) days prior to the expiration of such policy, accompanied by copies of the new insurance policy the Lessee proposes to substitute for the un-renewed policy.