Subrogating property losses within the context of the landlord and tenant relationship can add layers of complexity outside of the general issues that come with all property claims, such as cause and origin of the loss and actual damages incurred.
Before investing money and time, one issue worth analysis is figuring out exactly who can be pursued. Should the cause and origin of the loss stem from a commercial or residential tenant, the next place to turn to is the language of the lease, should one exist.
|It's in the lease
The seminal Illinois case of Dix Mut. Ins. Co. v. LaFramboise provides guidance as to the Illinois Supreme Court's posture when it comes to interpretation of whether a tenant is a coinsured under a landlord's policy and thus immune from claims of subrogation.
The tenancy at issue was that of one year and with approval from the landlord, the tenant attempted to strip paint from the exterior of the residence by heat application. This resulted in fire damages totaling $40,579, which were covered and paid by the landlord's insurance company.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
