Claiming back Insurance Premiums: A Warning to Landlords

In lease agreements it is often the landlord’s responsibility to make sure the leased property is insured.  It is not uncommon for the tenant, however, to be responsible for paying part if not all of the insurance premium. 

In a recent case Denise Green v 180 Archway Road Management Co Ltd [2012] it was decided that landlords who want  to claim payment from their tenants for the insurance premium will only be able to do so if they have complied with their own insurance obligations to the letter.

In the Green case the landlord was responsible for insuring the property in both his and the tenant’s names.  In return, each tenant had to pay part of the insurance premium.

In 2005, the tenant had been noted on the insurance policy in accordance with the landlord’s obligations.  In the subsequent years the tenant’s name had not been included, even though the part of the property they had a lease for was specified.

The Lands Chamber held that as the landlord had not fulfilled his obligations by including the tenant’s name on the insurance policy in the years after 2005, he was not entitled to seek payment from the tenant for the premium under the clause in the lease.

This case highlights the importance for landlords to carry out their obligations as specifically set out in their lease if they wish to recover payment for the insurance premium from their tenants.

For more information on this topic contact Amanda Mehlin on 01689 887808 or email at amanda.mehlin@cwj.co.uk