Property insurance

Buildings insurance

Any legal or equitable interest in property will be suffice to establish an insurable interest in it. Subject to this, a buildings insurance policy provides for the insured to be indemnified by the insurer in respect of loss or damage to the insured property caused by the insured against perils, such as fire or extraordinary weather events.

Buildings insurance is usually taken out by freeholders and tenants are not usually a party to it. There are notable exceptions, including situations where a leaseholder or tenant may seek to be a joint insured under the policy or to be otherwise entitled to receive insurance money. For practical guidance in these regards, see Practice Note: Insurance—a practical lease negotiation guide.

Where there are multiple parties that have interests in a buildings insurance policy, it is common for the policy to include language to protect the parties from the consequences of certain acts or omissions by other parties, such as failures to comply with policy terms and conditions or alternations of the property insured. For more guidance, see Practice Note: Insurance—non-vitiation (non-invalidation) clauses.

Property insurance policies