Insurance and leases

Insurance and leases guidance:

Insuring the developer’s works As between the developer and the tenant, the developer should covenant: • to ensure that the developer’s works are insured against usual...

Practice Note

Even if a specialist subcontractor is not providing any significant degree of design input in relation to its particular element of the developer’s works, it may well be...

Practice Note

In some respects, the only real value in any contractual duty under an appointment or obligation under a collateral warranty lies in the professional indemnity insurance...

Practice Note

Agricultural Holdings Act 1986 Where a tenancy agreement is governed by the Agricultural Holdings Act 1986, the obligations of the landlord and the tenant in relation to...

Practice Note

The principle of subrogation Subrogation is the right of an insurer, once it has made payment to its insured for loss covered by an insurance policy, to ‘step into the...

Practice Note

Business interruption insurance has typically been sold as an extension to commercial property policies. Most business interruption cover requires that any such losses...

Practice Note

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...

Practice Note

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...

Practice Note

Brexit impact As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an...

Practice Note

If there is no express provision on insurance in the agreement for lease then, under open contract: • neither party is obliged to insure the property, and • risk passes...

Practice Note

This Practice Note discusses a tenant’s considerations when negotiating insurance provisions in a rack rent commercial lease. It identifies key concerns, suggests...

Practice Note

Vitiation of an insurance policy An insurance policy may be vitiated (or invalidated) if the insured: • misrepresents or fails to disclose any material fact to the...

Practice Note

Pool Reinsurance Company Limited ('Pool Re') was formed in 1993 following a series of terrorism incidents in the early 1990s in London and elsewhere in England related to...

Practice Note

Usually a lease provides that in the event of damage or destruction, such that the tenant is unable to occupy or trade from the property or access it, the rent or a...

Practice Note

Generally, the tenant remains liable for the rent even though the premises have become unusable. Consequently, leases normally contain a provision suspending the rent in...

Practice Note

Inadequate insurance or service charge provisions A landlord of a flat lease may covenant to insure or provide other services 'subject to and conditional on due payment...

Practice Note

1 Tenant's obligation to insure The Tenant covenants with the Landlord to insure the Property and keep it insured, against damage or destruction by the Insured Risks, in...

Precedents

Level of cover It is in both parties’ interests for the premises to be adequately insured (particularly for the tenant where the landlord’s obligation is simply to apply...

Practice Note

No suspension implied A suspension of rent is not implied even where the tenant pays the cost of insurance. The tenant remains liable for the rent even though the...

Practice Note

Insured risks It is in the tenant’s interests to ensure the landlord covenants to insure against as comprehensive a range of risks as possible as: • an unqualified...

Practice Note

Who insures? Whenever practical a tenant's solicitor should propose that the premises are insured in the joint names of the landlord and the tenant. The advantages to the...

Practice Note

Tenants frequently carry out fit-out works at (or often prior to) the start of a lease and may also carry out refurbishment or further fit-out works during the term....

Practice Note

The Riot Compensation Act 2016 (RCA 2016) creates a new scheme in England and Wales to allow compensation to be claimed for property damaged, destroyed or stolen in the...

Practice Note

In most commercial leases the landlord effects: • building insurance, and • insurance for loss of rent—for the period it estimates it will take to reinstate the premises...

Practice Note
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