5 things you need to know about Insurance Obligations under a Lease:
1. The landlord usually accepts the obligation to insure the leased subjects for specified insured risks.
2. The tenant reimburses the landlord in respect of the premiums paid.
3. The definition of the insured risks should be considered carefully so as to ensure that all relevant risks are insured against and that there is no element of double insurance.
4. The landlord will generally have the obligation to reinstate the leased subjects in the event of damage to or destruction thereof - provided that said damage or destruction has not been caused by the act or default of the tenant.
5. During any period of reinstatement, there should be rent abatement with the landlord receiving the benefit of loss of rent insurance effected in terms of the lease. The lease may provide for the termination of the lease if the leased subjects are not reinstated within a specified period. The common law of rei interitus is usually excluded from operation.
No comments:
Post a Comment