In most lease agreements the owner of the building is responsible to construct the building and premises to a ‘white box’ specification which includes all permanent improvements.

The tenant is responsible to complete his tenant installation after receiving the premises in a ‘white box’ condition and is therefore responsible to maintain the interior of the premises, including the tenant installation for the lease period.

In the case of this lease agreement the landlord is not responsible to insure these tenant’s fixtures and fittings.

The tenant would be responsible to arrange the necessary insurance cover for their fixtures and fittings and tenant’s installations.

Often, to incentivise the tenant, the landlord will make a cash contribution to the tenant to be used for the fit out.

While the lease agreement might state that the contribution must be used for the fit-out, it is usually the tenant that chooses and installs the specialised equipment also assumes the responsibility for such equipment. In these cases, it is again the tenant that will be required to insure such equipment.

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Accensure Insurance Brokers Reg. no. 2003/017482/07 An Authorised FSP. No: 14215