Buildings insurance – owners and landlords

Property insurance will generally cover:

•
damage or destruction
•
loss of rent
•
public liability

Let property – who insures?

Where property is let, the landlord will usually be responsible for maintaining insurance, recovering some or all of the costs from the tenant(s).

The landlord will clearly need to insure where the lease is of part only of a building, but even in the case of a lease of the whole of a single building the landlord may well prefer to retain control of the insurance so as to be sure that the building is fully covered at all times.

Where damage or destruction occurs, the landlord must use insurance monies to reinstate the property, making up any shortfall out of its own pocket.

Where the landlord insures, it is advisable to include specific tenant covenants:

•
against insuring the building (to avoid the risk of double insurance and the possible effect this might have on the recovery of insurance monies under the landlord's policy)
•
not to do, or fail to do, anything which would lead to the landlord's insurance becoming void or voidable

For

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