Lessor cannot recover insurance excess from lessee when s269 Property Law Act applies
Background
Section 269 of the Property Law Act 2007 has been in force now for approximately 10 years. That is the section that exonerates the lessee for accidental damage to the lessor’s property if the lessor is insured for that damage or agreed to insure for that damage. This has the practical effect of making the lessor’s insurance available for the benefit of the lessee as well, as though the lessee is named as an insured under the lessor’s policy. There are only two exceptions to the exoneration provided by section 269: where the lessee deliberately causes the damage, or where the lessee causes the damage while committing an imprisonable offence. [Read more…]