Commercial Landlord Not Covered for COVID-19 Losses, Calif. Federal Judge Rules

  • Order

SAN FRANCISCO — A commercial property owner is not insured for losses caused by its tenants’ inability to pay rent during the COVID-19 pandemic because it did not sustain “direct physical loss, damage, or destruction,” as required by the policy, a California federal judge has ruled.

In a May 21 order, Judge Jon S. Tigar of the U.S. District Court for the Northern District of California explained that because, according to the complaint, government orders caused the property’s untenantability, “there is nothing to fix, replace, or even disinfect.”

644 Broadway LLC owns and rents out space at two commercial properties …


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