What insurance categories are most commonly overcharged in CAM?

The most common: directors and officers liability, corporate umbrella policies, workers compensation for staff not at the premises, and property insurance covering assets the lease does not include. All of these are frequently excluded by lease language.

Does CAMAudit flag insurance overcharges?

Yes. CAMAudit's Insurance Overcharge rule classifies each insurance line against the coverage types the lease permits. Any coverage type not listed as recoverable is flagged as an overcharge with the dollar amount scaled to the tenant's pro-rata share.

Taxes & Insurance

Insurance Reconciliation

Last updated: May 2026

The process of verifying that insurance costs passed through to tenants in a CAM reconciliation match the coverage types and amounts permitted by the lease. Insurance overcharges typically arise when landlords include broader corporate coverage than the lease allows.

Firm impact

Insurance overcharges appear most often in store-within-a-store, sublease, and multi-location portfolio structures, where the landlord passes through a host-store or corporate package policy that covers far more than the tenant's leased premises.

How this gets abused

A CVS pharmacy sublease inside Target permitted only pharmacy-specific coverage. The 2021 operating statement passed through Target's host-store commercial package policy and directors and officers liability insurance. That pushed $5,952 in duplicate and corporate insurance costs into CVS's CAM bill.

Practitioner note

Request the actual insurance certificates or declarations page for the reconciliation year. Compare the coverage types billed against what the lease explicitly permits. Directors and officers liability, umbrella policies, and employer practices liability are the most commonly impermissible categories.