Differences—joint insured and noting
Differences—joint insured and noting

The following Property practice note provides comprehensive and up to date legal information covering:

  • Differences—joint insured and noting
  • Joint insurance
  • Multi-let properties
  • Noting

Joint insurance

Joint insurance arises where two or more people insure separate insurable interests in the same property with the same insurer under a single insurance contract.

In the property context, joint insurance might arise where:

  1. a landlord and a tenant who has paid a substantial premium for a long leasehold interest insure their respective capital interests in a building

  2. the main contractor, the developer (as employer) and possibly also a provider of development finance arrange for a contractor’s all risks insurance policy to be taken out in their joint names to insure their respective interests in a building which is under construction

If a claim is made under a joint insurance policy:

  1. none of the insured can recover more than their individual loss

  2. the policy will specify how each individual loss is to be calculated and apportioned (assuming that the insurance proceeds are not to be applied in reinstating the building)

  3. the insurer cannot subrogate against any of the joint insured

However, the risk for each joint insured is that the insurer may be able to avoid the entire policy if any one of them has failed to comply with its duties of disclosure and notification to the insurer.

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