A recent case in the Upper Tribunal (Lands Chamber) has held that a residential lease that obliged a landlord to insure against the “usual comprehensive risks” in accordance with the Council of Mortgage Lenders recommendations required the Landlord to insure against terrorism.
The list of “usual comprehensive risks” includes explosion. The Upper Tribunal held the ordinary meaning of explosion included explosion caused by terrorism.
This decision will be of interest to both landlords and tenants. Landlords should note that an obligation to insure against explosion may require terrorism insurance and ensure their leases are drafted to avoid uncertainty. Tenants should note that a well-drafted lease will usually oblige them to pay for it and should take care to review the insurance provisions in their lease carefully before signing it.
For advice on insurance provisions in residential leases from a landlord, tenant or investor perspective, please contact the hlw Keeble Hawson Residential Property team.