Risky Business

By Jennifer Hotston, Charles Russell LLP

Are you covered?

If your charity occupies property under a lease, you might want to check whether the lease deals with what would happen if the property is damaged or destroyed by a risk not covered by insurance. You might be surprised to find out that many leases do not deal with this possibility.

Flooding has always been an issue in the UK. However, it is predicted that over the next century flooding will become even more severe due to the effects of climate change. Stories have appeared in the press recently indicating that insurers are refusing to insure properties with inadequate flood defences. If insurance is not available for flood risk because of the area in which the property is situated, flood damage would be an uninsured risk.