Agents and both residential and commercial landlords need to check their insurance policies to check they’re up to date, NAEA Propertymark Commercial Panel Board Member Michael Sears has warned.
Invalidated insurance claims for a leased branch, irrespective of whether it is owned or not, can cause havoc.
The Insurance Act 2015 specifies that the insured party has a responsibility for fair presentation, which means landlords and/or their agents must unveil every material fact to insurers.
Both residential and commercial landlords and tenants would like to be paid immediately once a claim appears. However, many insurers will want to impose exclusions where they can. This is the reality of a building’s insurance claim.
NEGLIGENCE WARNING
Sears says: “If a commercial or residential tenant has not been given a copy of the insurance policy by the landlord or agent, they cannot conform with its conditions.
“Agents (being the professional) should ensure tenants receive a copy, otherwise they could be held in negligence by their client if the claim doesn’t pay out because the tenant has not complied with the insurers requirements due to not knowing about them.”
He adds: “Do not fail to read your policy, especially its schedule.”
