Who Pays for Roof Leaks Above a Commercial Tenant’s Unit?

One leak can create three different bills: repairing the source, restoring damaged property inside the unit, and absorbing the interruption to the business. The landlord's responsibility for the roof does not automatically answer the other two.

Start by protecting people and reporting the incident, then trace each cost through the lease and the relevant insurance policy. Do not wait for a final argument about responsibility before notifying the landlord and your own insurance representative. Nor should a tenant assume that arranging an emergency visit establishes who will ultimately pay.

This is a commercial-tenant decision guide, not a finding about liability or coverage under a particular lease. The sources were checked on September 8, 2026.

Separate the three cost files

Keep one incident record, but classify the consequences so they do not disappear inside a general “roof leak” discussion.

The repair contractor may have evidence relevant to all three files without deciding the legal or insurance outcome. A roofer's explanation of the entry point does not interpret your business-interruption policy. An adjuster's decision about a damaged machine does not necessarily settle the landlord's continuing maintenance obligation.

Identify the source without assuming it from the stain

Record what you can safely observe: where water is entering the unit, when it was noticed and whether the affected area is changing. Describe it as water entry until a qualified person identifies the cause. The ceiling below a rooftop installation can be affected by more than one possible source, and a stain is not a technical diagnosis.

Notify the landlord or property manager using the lease's notice and emergency-contact arrangements. Ask who is coordinating the investigation, what temporary measures are authorized and when you will receive an update. Keep a record of calls as well as written messages.

A useful initial message is: “Water entered the unit at the marked ceiling area at approximately [time]. We have restricted access to the affected area. Photographs and a list of affected equipment are attached. Please confirm the emergency contractor and immediate protection arrangements, who is investigating the source, and the next update time. We are also notifying our insurer.”

Fill in only facts you know. Do not label the event negligence, a failed roof or an insured storm merely to make the notice sound decisive.

Make safety and evidence work together

Keep staff and visitors away from water-affected electrical equipment, unstable ceiling materials and other hazards. Do not climb onto the roof, open electrical equipment or remove saturated ceiling material as an informal repair. Obtain qualified assistance and use emergency services where there is immediate danger.

WorkSafeBC's post-flood guidance identifies structural, electrical, contamination and disturbed-material hazards and emphasizes a site-specific risk assessment. A commercial leak can require a much smaller response than a flood, but the same precaution applies: assess the actual hazards before asking staff to clean up. WorkSafeBC recovery-safety guidance

From a safe location, photograph affected areas and items before they are moved if possible. Record what was relocated or protected, by whom and when. Keep cleanup receipts. Ask the insurer before disposing of damaged property, except where it is dangerous or creates a health hazard and appropriate safety directions require action. IBC's business-claim guidance recommends documenting damage and contacting the insurance representative promptly. IBC: filing a business insurance claim

Repair responsibility can differ from the final cost allocation

Read the lease's repair provisions alongside operating-cost recoveries, damage clauses, insurance obligations, exclusions and any tenant-alteration agreements. Ask separately who must arrange the work and who ultimately bears the expense. Those are not always the same party.

A historical Vancouver office lease illustrates the separation. The February 5, 2016 Aquinox lease places the roof within the landlord's repair provisions, while other sections address tenant insurance, damage to the premises and limits on rent abatement. It does not treat one roof-repair sentence as the answer to every resulting loss. This is a specific negotiated example, not a standard BC allocation. Aquinox lease, sections 7.2, 10 and 11

In your own documents, check whether work to a tenant's rooftop equipment or penetration affects responsibility. Also ask whether the proposed charge is a direct claim against the tenant, an operating-cost allocation, a deductible, or an insurer's recovery position. A bill described simply as “your share” should identify the contractual basis and supporting scope.

Do not authorize broad permanent work on the landlord's building without clarifying authority. Where an immediate protective action is necessary, document what was authorized and keep the question of reimbursement distinct. An urgent problem does not make every proposed charge automatically recoverable.

A repaired roof does not mean the business loss is insured

Commercial property coverage and business-interruption coverage answer different questions. IBC describes business interruption as an optional addition to commercial property insurance, generally tied to a covered event and the policy's terms. It also notes that policies are not standardized and describes different approaches to earnings, profits and extra expense. IBC: types of business insurance

Ask your own representative what coverage applies to this event, what physical damage or other trigger must be established, and what limits, deductibles, waiting periods or duration provisions are relevant. Do not infer an entitlement from the fact that the business had to close. Equally, do not assume the landlord's property policy protects your stock, equipment or lost income.

Keep the business record factual. Identify which operations could continue, which could not, cancelled orders, rescheduled work, expenses avoided and additional costs incurred. The insurer or accountant can help calculate the claimed loss under the policy. A fall in sales is not, by itself, the same as the amount payable.

Do not turn a leak into an avoidable rent dispute

Check the exact rent-abatement or damage provision with your lawyer. A contractual right may depend on defined conditions and may have limits. Do not unilaterally deduct a repair invoice from rent or stop paying because the landlord is responsible for an element of the building. Obtain advice about your rights, notice requirements and any agreed temporary arrangement.

Before reopening an affected area, confirm who is responsible for assessing safe use, drying, electrical equipment and any remaining repairs. “The dripping stopped” is not the same conclusion as “the area is suitable to use.” Keep outstanding items and follow-up dates visible until the incident is resolved.

For related building-system obligations, see our guide to HVAC responsibility in commercial leases. When evaluating a unit or renewing with JQ, bring prior leak records and the relevant lease clauses into the review. The aim is to understand the repair route, property-damage exposure and business-continuity exposure before the next incident tests them.

By Justin Qiao, Personal Real Estate Corporation, Justin Qiao Group | RE/MAX Crest Realty.