Entitlement to insurance money
Entitlement to insurance money

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

  • Entitlement to insurance money

Most modern commercial leases, and many residential ones, place an obligation on the tenant to pay 'insurance rent' and on the landlord to insure the property or the building of which they form part. The landlord is generally obliged to rebuild or reinstate the property if damage occurs. However, difficult issues arise if rebuilding is prevented. Who is entitled to receive and keep the insurance money? There have been two cases on the point, but both turned very much on their own facts, and in particular the conduct of the parties after destruction.

See Practice Note: Who is responsible for the property—SCPCs?

The lease in Beacon Carpets v Kirby obliged the tenant to pay insurance rent and the landlord to insure and reinstate. The obligation was to insure in joint names, and this was done for the parties 'for their respective rights and interests'. Th