Can my landlord pass insurance deductibles through CAM?

Generally no. Insurance deductibles are the result of the landlord's choice of policy structure, not an operating expense. Standard CAM exclusion lists prohibit pass-through of costs arising from the landlord's insurance deductibles. Some leases are silent on this — if yours is, argue that deductibles are a risk-management cost attributable to the landlord's business decision.

How can I verify the insurance premium charged to CAM is accurate?

Request a copy of the insurance certificate and the actual premium invoice. Verify the premium covers only this building and its common areas — landlords with multiple properties sometimes allocate their entire portfolio premium inaccurately. Also confirm the coverage types are limited to property and general liability, not specialty policies that benefit only the landlord.

Can my landlord pass insurance deductibles through CAM?

Generally no. Insurance deductibles are the result of the landlord's choice of policy structure, not an operating expense. Standard CAM exclusion lists prohibit pass-through of costs arising from the landlord's insurance deductibles. Some leases are silent on this — if yours is, argue that deductibles are a risk-management cost attributable to the landlord's business decision.

How can I verify the insurance premium charged to CAM is accurate?

Request a copy of the insurance certificate and the actual premium invoice. Verify the premium covers only this building and its common areas — landlords with multiple properties sometimes allocate their entire portfolio premium inaccurately. Also confirm the coverage types are limited to property and general liability, not specialty policies that benefit only the landlord.

Common Area Insurance: CAM Line Item Audit Guide

Landlord's property and general liability insurance for the building and common areas, allocated pro-rata to tenants.

Recoverability & Controllability by Lease Type

Lease Type	Recoverable?	Controllable?
NNN	Yes	No
Modified Gross	Yes	No
Full-Service Gross	No	No

Approximate budget share: 10-15% of total CAM pool.

Common Abuse Patterns

Landlords use high-deductible insurance policies and then pass the deductible costs through to tenants as CAM expenses when claims occur. Insurance premiums also spike when a landlord switches to higher coverage for their own benefit.

Red Flags to Watch

Insurance deductible amounts appearing as line items in the CAM reconciliation
Premium increases of 30%+ year-over-year without explanation
Coverage for landlord-specific risks (environmental liability, errors & omissions) billed to CAM
Premiums for properties the landlord owns that are outside this building

Your Right to Dispute

Demand a copy of the insurance policy and premium invoice. Exclude landlord deductibles from CAM — these are the landlord's risk-management decisions. Verify coverage is limited to this building and its common areas. Challenge any specialty coverage that benefits only the landlord.

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Related Resources

GlossaryCAM Glossary GlossaryControllable Expenses ResourcesCAM Audit by State ToolsFree CAM Audit Tools

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This page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.