Lease-end dilapidations insurance

At the end of a commercial lease, a tenant may want to move on from a property but if their former landlord is not satisfied with their repair and reinstatement works, they may find themselves involved in a lengthy and expensive legal dispute.

By insuring the liability figure and legal costs above a pre-agreed excess, this innovative dilapidations insurance covers tenants against the cost of future terminal dilapidations.

Key benefits of dilapidations cover

  • Allows tenants and their advisors to implement an optimum risk mitigation strategy
  • Avoids tenants being pressured into settling inflated landlord claims
  • Diverse portfolios of properties at different stages of tenure can be holistically managed under a single policy

What you need to know

Here are some useful questions and answers about our dilapidations insurance cover:

At what stage of the lease-end dilapidations process is cover available?
Cover is possible at varying stages of the lease-end dilapidations process:

  • Before lease-end
  • After lease-end, but before the former landlord has alleged that they have a claim
  • After the former landlord starts legal action
What if the tenant has completed works but there has been no formal confirmation from the landlord that obligations have been discharged?
 

This could result in an ongoing potential liability that remains on the former tenant’s accounts for 6 or, if the lease was by deed, 12 years from the end of the lease.

For a fixed premium, we could provide insurance against the former landlord's re-animation of their claim at some unknown point during that liability period.

What our customers have to say

"The team at Clear are fantastic - they are very proactive, creative and competitively priced. Their pragmatic approach has, on a number of occasions, resolved otherwise problematic situations"

Nick Doffman
Partner, Head of Real Estate
Mischcon de Reya LLP

Related Information

Speak to a specialist, Nick Mace, to arrange your insurance cover.

Call 020 8329 4964 or email