What are Improvements and Betterments in the context of insurance?

Improvements and betterments refer specifically to changes made to a rental property by a tenant that enhance or increase its value, functionality, or usability, rather than simply regular maintenance or repairs. These alterations typically aim to meet the tenant's specific needs and are often not removable at the end of the lease. In many insurance contexts, these improvements are significant because they represent an investment by the tenant that may not be covered under standard insurance policies unless specifically included.

While upgrades for energy efficiency, structural repairs per city regulations, or permanent fixtures installed by the landlord are important in property management and insurance discussions, they do not fall under the definition of improvements and betterments as understood in the context of a tenant's customizations to a property. Therefore, the answer emphasizes how tenant-installed modifications contribute to enhancing the property's value while focusing on the leaseholder's unique requirements.