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RENT CLAUSE - IAR

Risks : IAR

“It is hereby declared and agreed that in the event of the said premises or any part thereof becoming untenantable as result of its destruction or damage by fire or any other perils hereby insured against, the company will, subject to the conditions hereinafter contained, indemnify the insured for loss or rent in accordance with the lease or agreement existing at the tie of such destruction or damage. The company shall only be answerable for rent for such period as the premises (or proportionately in the case of any part thereof) may be actually untenantable, due diligence being used in the repair or reconstruction of the same, but if any case the repair or reconstruction of the said premises be not fortwith commenced, the loss of rent shall be determined by the time which would have sufficed for the purpose had due deligence been used, but in no case exceeding 12 (twelve) months rent. In case the rent of the premises for the period specified shall exceed the sum hereby insured, the amount payable shall be in the proportion which the sum insured bears to such rent. If the whole of any part of the premises be occupied by the insured, the rent thereof shall be assessed at a reasonable market value. And it is further stipulated that should any of the standing charges incurred for maintaining the premises in a tenantable condition (such as wages of caretaker or liftmen, cost of power, lighting and the like), ceased or be reduced in consequence of fire of any other peril hereby insured against, then the amount payable shall be reduced accordingly”

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