Q&As

Do you have a Precedent for a clause in a lease requiring a tenant to bear uninsured losses?

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Published on LexisPSL on 21/08/2017

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Do you have a Precedent for a clause in a lease requiring a tenant to bear uninsured losses?

Do you have a Precedent for a clause in a lease requiring a tenant to bear uninsured losses?

We do not have a Precedent clause providing for a tenant to bear uninsured losses, but if uninsured damage is not excluded from the tenant's repairing obligation, the tenant will remain liable to repair or reinstate the uninsured damage to the property, so to avoid confusion over the parties' respective repair/reinstatement obligations, the lease should be clear on this point.

Landlords often try to limit suspension of rent to damage arising from an insured risk, except where the insurance is vitiated by any act or omission of the tenant. This means that the suspension of rent does not operate, and therefore the rent remains payable, where the damage is due to an uninsured risk.

The Code for Leasing Business Premises in England and Wales 2007 recommends that landlords should bear the risk of damage by an uninsured risk, or that a suitable alternative provision is made to protect tenants from having to meet the costs of repair or reinstatement where damage is caused by an uninsured risk. A tenant should always seek to ensure that uninsured damage is carved out

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