Betterment insurance is a term applied to insurance that protects improvements made to a property, typically a commercial property. Generally, the property owner will carry some type of property insurance, but that is only to protect the investment the owner has made. If a renter makes improvements on the property for the purposes of operating a business, that generally is not covered should a loss occur. Therefore, tenants are more than likely going to need an additional insurance product to cover themselves.
In this way, betterment insurance is a lot like private renter's insurance. As with renter's insurance, betterment insurance does not protect the physical property that was rented, but rather the renter's contents. Renter's insurance is generally limited to private individuals, and may not cover capital improvements made to the property, but rather simply covers the loss of any personal property not connected to the building.
The major difference is that betterment insurance is typically used by those who are investing in a commercial or industrial property, rather than a private residence. Also, it not only covers possessions in the building, such as computers, furniture and equipment, it covers improvements made to any structures as well. Then, if a loss such as a fire or natural disaster occurs, the insurance will help put the property back to the state it was before the loss took place.
This is especially beneficial for businesses that lease properties because modifications to a building are often needed to suit the function of that particular business. For example, a retail space may put up dressing rooms if the main purpose is to sell clothes. A restaurant may rearrange where the kitchen area is, or put in an entirely new kitchen if the building was not originally envisioned as a restaurant.
Improvements of this type can be very expensive to replace once they are lost and cause a considerable hardship for the business. If a loss does take place, it is important to coordinate efforts with the landlord and the landlord's insurance company to determine what exactly the other company will pay for, and when work would be expected to begin and be completed. That way, the agency with the betterment insurance policy can then get to work on its portion of the claim.
Insurance products like these could be sold in a number of different settings. Generally, the best resources to check with are insurance agencies that write property or renter's insurance policies. They may also write betterment insurance policies or at least provide some direction as to where to turn. If the renter has a dedicated agent to work with, that is also a good resource for information.
