Real Estate Tip – Tricky Business Part II: Waiving Claims, Subrogation and Insured Losses for Landlords


Tricky Business Part 1 discussed indemnification for landlords “against all claims.” Part 2 explains how to be certain your insurance covers any claims you waive and all claims against you that have not been waived.

Example: If a tenant waives claims against a landlord for water damage to personal property in a leased space but not in a common area, the tenant needs insurance for in-space casualty loss. The landlord also needs similar common area insurance.

By waiving subrogation, the recovery for any loss stops at the insurance company level to reduce the risk of litigation. Both parties can limit their subrogation waiver by the amount or type of risk, but limited waivers mean increased risk of litigation.

Work with your insurance agent and experienced counsel to match insurance provisions to waiver provisions in the lease.

Today’s real estate tip is brought to you by Rick Smith, a member of Bernstein Shur’s Real Estate Practice Group. Stay tuned for more useful tips for real estate professionals.

For more information on subrogation and insurance provisions, contact Rick at or 603 623-8700 ext. 8829 or 207 774-1200.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Bernstein Shur | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.