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.
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