CFC Insurance Ltd
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Condemnation Insurance

Condemnation Insurance

Condemnation Insurance (eminent domain):

Financial loss caused by eminent domain.


  • Occurrence causes permanent loss of rent payments from tenant.
  • Occurrence has rendered the property unsuitable for continued business operation (subject to restrictive covenants in the lease).


  • Policy limits are no more than the present value (PV) of outstanding debt.
  • Term coincides with primary term of lease, typically 10-20 years.


  • Paid for by the borrower for benefit of the lender.


  • In case of condemnation, the condemnation award is first applied to offset the claim.
    • Value of remaining property, including land, becomes available to offset any remaining amounts paid by insurer.