Do Commercial Property Insurance Policies Cover COVID-19?

Due to the government’s business impact of COVID-19 control measures, companies are looking to their property insurance policies for potential recovery options for ongoing losses. Business owners should be aware that the extreme stresses caused by inevitable economic disruptions may be mitigated by reliance on force majeure clauses in contractual agreements and business interruption provisions outlined in commercial insurance policies. As such, commercial entities need to work together with their property attorney, broker, and other advisors to determine if they may obtain relief from the effects brought by the pandemic.

 

Possible Property Insurer Responses

The scope of government actions to mitigate the virus’s spread and protect community health and safety are changing daily, if not hourly. They have closed down certain areas of the country, enacted quarantine zones, and curtailed travel. These measures have suspended a lot of business activities that rippled through the global economy. Various restrictions related to coronavirus remain in effect in the UAE. For example, in food establishments, social distancing must be maintained at all times among customers, and tables should be at least two meters apart.

Organizations are trying to understand how their property insurance policies might respond to ongoing financial loss. Under traditional property policies, insured physical loss or damage is needed to trigger a response. If coronavirus manifests at insured premises, insurers could assert that the effects are not physical loss or damage with people becoming unwell. They can also contend that fear on the public and possible contamination is not physical loss or damage. In this case, policyholders should consult with law firms in Dubai to test the positions taken by insurers as to what accounts for their policy conditions.

 

Business Interruption Coverage Triggers

An insurance policy offering “business interruption” coverage provides relief from economic distress through indemnification for losses ensuing from the risk insured against. But insurers are likely to view this coverage as being provoked only by insured physical loss or damage, following the cause of loss. This could mean that no coverage will be available where coronavirus is present or suspected to be present. However, in Dubai, property lawyers point out that there are policy extensions such as interruption by civil authority, ingress/egress, attraction or leader property, and contingent business interruption that may respond to losses related to coronavirus.

For instance, if coverage includes an extension for decontamination costs, it can respond to business interruptions caused by the enforcement of either law or ordinance or a government authority prompted by the contaminants’ presence. Another extension that can be used to cover losses related to coronavirus is communicable disease clean-up. It can cover reasonable and necessary costs for cleaning up a contaminated facility and disposing of contaminated materials due to a communicable disease’s actual presence on-premises.

 

Some commercial insurance policies contain more specified forms of business interruption coverage. Suppose your business is suffering losses and needs guidance over your insurance policy. In that case, you can rely on Motei & Associates to provide you with the best real estate lawyer in Dubai. They can work with you to notify insurers or set forth arguments in favor of coverage. Book an appointment today by calling +971 4 435 5959.

What Happens If One Of the Owners of a Property Goes Missing?

 

Many real estate transactions get delayed each year because one of the property owners has disappeared and remained absent without explanation. The missing co-owner can sometimes be an heir, an estranged husband or wife, a relative, or an unrelated co-investor. In most cases, one party cannot transfer the title to a buyer because the co-owner's name is still on the ownership records. For a deal to be completed, the guidance of a property attorney is necessary.

The issues inherent in the handling of property owned by a missing co-owner are both numerous and challenging. As long as it is not known whether the person in question is living or dead, rights remain uncertain, and the estate is rendered virtually useless. In Dubai, property dispute lawyers may recommend bringing a "quiet title" lawsuit to remove the missing co-owner's name from the land title.

A quiet title action is a proceeding filed to establish an individual's right to ownership of real property (land and buildings affixed to the land.) If a co-owner's whereabouts are unknown, the first step is to request approval from the local court for "service by publication" with a legal consultant's help. It's a legal notice printed in the local newspaper that informs a missing property co-owner that he is being sued. In addition, his presence is required in court, or his legal rights will be determined without his presence.

The plaintiff in a quiet title lawsuit seeks a court order that prevents the respondent from making any subsequent claim to the property. This action is important as real estate may change hands often. The general rule with a quiet title action is that the plaintiff may succeed only on the strength of his claim to the property, not on the respondent's claim's weakness.

A plaintiff may have less than a fee simple (absolute ownership of the real property) or less than full ownership and carry-on action to quiet title. He will then carry the burden of proving that he owns the title to the property. You will succeed in removing the respondent's claim from the title as long as your interest is valid, and the respondent's interest is not.

However, the common problem is that the judge doesn't always completely terminate a missing co-owner's rights in the estate after just a short absence, such as a year. This is why it is important to talk to an experienced, local real estate lawyer Dubai firm to evaluate the situation. Motei & Associates offers services in relation to both local litigation and international arbitration. They have the technical expertise to provide representation in all matters of property disputes. Book an appointment today at +971 4 435 5959!