In the hurricane-prone Southeast, existing and prospective commercial tenants, whether retail or office, need to spend some quality time reviewing the details of the insurance policy that covers the property when they are planning to lease or renew. At the same time, researching the finer points of common area maintenance charges and reviewing structural roof studies can save money — and headaches — should disaster strike down the line. Here is the inside scoop on what commercial tenants should look for in a lease.

Imagine this scenario: you've just signed a new lease, you've set up your store and you're ready for business. Then, a massive hurricane slams ashore, tearing up your building's roof and shaking up the contents of your business in a matter of hours. Just when the cleanup starts and you think the bad news is over, disaster strikes. As it turns out, the owner of the property where you lease has a high deductible on his insurance policy, and he announces that the deductible cost will be passed on to all lessees via common area maintenance charges, an expense that will mean thousands of dollars out of your bottom line. If you, or one of your neighboring lessees, decides to dispute, the delay could cost you even more in lost time and revenue because the owner and the insurance company may delay the repairs needed to get business moving again.

While this situation may be painful to envision, it is all too real for many retail businesses and office lessees hit hard by last year's multiple hurricanes. The next hurricane season is approaching at Category 5 speed, and for businesses negotiating new or renewed leases, it's time to prepare.

With tenacity and attention to details, a lessee can greatly improve his position should disaster strike, saving money and setting the scene for a quicker recovery and fast action from the property owner. Some key steps will help during the lease negotiation phase:

1. Request a copy of the owner's insurance policy, and study it. Before signing a lease, wait to see the owner's policy, and if necessary, turn to an insurance expert who can review it on your behalf. The first element to examine is the policy's limits in the event of a disaster. Inadequate coverage will not only impact the owner of the property but each of the lessees as well, delaying or even prohibiting eventual repairs and reconstruction. Policy limits should be for full replacement cost of the building(s). The lessee should have its own insurance to cover its contents.

2. Check the deductible on the owner's insurance policy, and understand what it means to you as a tenant. Typically, lessees pay common area maintenance charges on a pro rata basis for basic repairs, maintenance, janitorial services, taxes and insurance premium costs. If the lease you negotiate does not address the issue of how insurance deductible costs will be treated in the event of damage to the property or structure, or if it specifically states that deductible costs will be transferred to the lessee via common area maintenance charges, then you will be in a particularly difficult position should disaster strike. If the deductible for the policy is high, then the cost to you as a lessee will be that much more burdensome. Ultimately, you should push hard to negotiate your lease so that it includes language specifically stating that insurance deductible costs cannot be passed on to you in any form or have the deductible specifically waived or at least capped.

3. Ask to see the most recent roof studies and engineering plans for the building where your business will be housed. Commercial property owners generally request an independent roof study at the time of purchase or refinancing of the property. The analysis will show the age and general state of the roof at the time of examination and may provide a window into the likelihood of damage in the event of a hurricane. You may also want to consider negotiating language in your lease that requires the owner to provide you with any future roof study that is completed in the event one is done.

4. Stipulate that, in the event the property is refinanced, the owner will be required automatically to provide you with a copy of any new insurance policy. Often, during the refinancing process, an owner will modify or change insurance coverage options and parameters. So, while you may study and understand the policy now, an unfortunate surprise may still lurk down the road. Requiring the owner to provide you with a copy of any future policy will ensure that you understand your position relative to insurance limits and deductibles.

5. Push for the inclusion of a financial penalty for the owner if, in the event of a disaster, repairs are not completed in a set, reasonable time. A lease will usually include language that requires an owner to correct any structural problem so that businesses can be operable within a set amount of time, for instance 60 to 90 days. If the owner does not abide by the requirement, the lessee then has the right to cancel the lease and vacate the premises without penalty. This resolution, however, comes at a high cost to the lessee, interrupting business operations, and for retailers, inconveniencing customers. Ideally, a lease should include language that provides for a financial penalty in the event that the owner does not complete major repair issues within a specified time.

A lessee who has the foresight to negotiate a lease that accounts for all possible financial concerns in the event of a disaster will have a much better chance to weather the economic storm that might be caused by inattention to detail.

Seth Werner is chairman and chief executive officer of Ft. Lauderdale, Florida-based Cypress Creek Capital.