For Florida commercial tenants, hurricane season isn’t a hypothetical risk — it’s an annual, recurring reality that lease terms should specifically account for. Two provisions matter most when a storm forces a closure or causes property damage: force majeure clauses and business interruption coverage.
What a Force Majeure Clause Actually Does
A force majeure clause excuses a party’s performance under a lease — typically delayed rent payment, or in some cases, entire obligations — when an event outside either party’s control makes performance impossible or impracticable. Whether a hurricane qualifies, and what relief it actually provides, depends entirely on the specific language in the lease rather than being automatic.
Force Majeure Doesn’t Always Mean Rent Is Excused
A common misconception among tenants: force majeure automatically means rent doesn’t have to be paid during a hurricane-related closure. In reality, many force majeure clauses only excuse non-monetary obligations (like an operating covenant requiring the business to stay open during certain hours) while rent remains due regardless — unless the lease specifically addresses rent abatement for casualty events separately.
Casualty Clauses: The Provision That Actually Addresses Rent
Separate from force majeure, most commercial leases include a casualty (or “damage/destruction”) clause that specifically addresses what happens to rent obligations if the premises are damaged and unusable. This is typically the more directly relevant provision for hurricane-related property damage, and tenants should review it independently from force majeure language.
Key elements of a strong casualty clause:
- Rent abatement during any period the space is unusable due to covered damage
- Landlord’s obligation and timeline to repair, with a defined outside date
- Tenant’s right to terminate if repairs aren’t completed within a reasonable period
- Clarity on which party’s insurance responds to different categories of damage
Business Interruption Insurance: A Tenant’s Own Protection
Rent abatement under a lease only addresses the tenant’s obligation to the landlord — it does nothing to replace the tenant’s own lost revenue during a closure. Business interruption insurance, carried by the tenant, is what actually covers lost income and continuing expenses during a covered closure period. Tenants should confirm their own coverage independently, rather than assuming lease protections address this risk.
Coordinating Lease Language With Actual Insurance Coverage
Ideally, a tenant’s force majeure and casualty clause protections should be reviewed alongside their actual insurance coverage — including any personal guaranty exposure that could remain even during a period of reduced or abated rent, if the lease doesn’t clearly address guaranty obligations during a casualty event.
Reviewing These Provisions Before Hurricane Season, Not During It
The worst time to discover a lease’s force majeure and casualty provisions are inadequate is in the days after a storm, when a tenant is already dealing with property damage and lost revenue. Reviewing — and if necessary, renegotiating or clarifying — these provisions before signing, or during a renewal, is far more effective than trying to interpret ambiguous language under pressure after a storm has already hit.
Preparing your business lease for hurricane season, or dealing with storm-related lease issues now? Brent A. Levison, P.A. has over 25 years of experience helping Florida commercial tenants navigate force majeure and casualty provisions. Contact the firm today for a consultation.
The information in this article is provided for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please consult a qualified attorney.