“For the first time in my career I have bought my own insurance business. A very stressful and challenging time not just buying the business, there was a Landlord to deal with concerning taking over the existing premises. From the moment I asked Andy to assist me, he provided me with amazing support and advice! The premises are 2 cottages joined as one, so not huge place. Andy’s report consisted of 99 pages and 300 photographs. The Landlord accepted Andy’s report over the one he had obtained from his Surveyor. Andy will have saved me in excess of £30,000 in dilapidation costs when it’s the time to hand the premises back.
If you want a person who cares about their clients and provides a service which goes above and beyond! There is nowhere else to go!!!”
Curtis Dowman Managing Director,
It is usual in most Full Repairing and Insuring FRI lease provisions for Landlord to insure the building and charge back the premium to the Tenant. The Tenant is obliged not to do anything by action or inaction that might void the insurance policy.
How many Landlords actually send a copy of the policy to the Tenant and draw attention in writing to the insurance company’s specific requirements and contractual terms with which the Tenant should comply; have you?
Recently ,whitest reviewing a lease during the term with regard to interim inspection and preparation or schedule of dilapidations, this matter came up. I reminded the Landlord of the above, which he had not done.
Lo and behold he discovered his insurance policy expressly required annual inspection ( and record of such inspection by roofing contractor) of all flat roofs. Further such record had to submitted annually to the insurers.
The Tenant could not reasonably have been required to comply if he had no constructive knowledge of such requirement by the insurer.
Many insurers are now including express provisions on buildings and engineering services maintenance. Why should they underwrite neglect to good housekeeping?
Always check the policy wording. Remember the loss adjustor in the event of claim works for the insurance company and not you.
<WoW (Words of Wisdom)
Send copy of lease to your Tenant, draw attention to specific conditions of such policy and require Tenant to provide evidence of compliance periodically, otherwise run risk of the policy being void by breach of insurance contract condition. Instruct periodic inspections by your Building Surveyor.