If a client installs new improvements in a leased space, how should these values be treated for insurance purposes?

When a client installs new improvements in a leased space, these improvements are considered to be part of the client's property and thus should be covered under the client's own property insurance policy. This coverage is important because improvements like fixtures, partitions, or enhancements made to the space typically do not fall under the landlord's insurance policy, which primarily protects the building structure itself and its fixtures.

Additionally, these improvements represent a business investment by the client; therefore, it is in their best interest to ensure they have coverage in place in case of loss or damage. Relying on the lease agreement to automatically insure such improvements or assuming that no additional insurance is needed can leave the client vulnerable in the event of an incident, potentially leading to substantial financial loss. Hence, establishing coverage under their own property policy aligns with prudent risk management practices.