Hanyu Advisory

When a building landlord requested insurance for building, he also asked for stocks and contents in the said building.

In this case, he revealed that he rented the building to a tenant who occupied it as a warehouse. He did not know what type(s) of stocks or contents were stored or kept in the warehouse.

We explained to the landlord that he could not insure the stocks or contents in the warehouse as they did not belong to him. He had no insurable interest in the stocks or contents.

The landlord however could insure the building against fire, theft, flooding, and other forms of damage. But a risk survey is usually required to know of the risk exposures like the type(s) of stocks that the tenant stored or kept in the warehouse.

In this example, the tenant kept many books and stationery items in the warehouse. The tenant had been occupying the warehouse for many years which was used to keep books and stationery items meant for religious use.

The landlord was advised of implementations of the improvements of fire risks such as providing fire extinguishers in the warehouse and also asking the tenant to visit the premises every fortnightly since it would be left 'unattended' most of the time.