Landmark Ruling on Insurance Commissions — What Landlords Need to Know

Last week, the High Court handed down judgment in a pivotal case for commercial landlords and tenants: London Trocadero (2015) LLP v Picturehouse Cinemas Limited & Others ([2025] EWHC 1247 (Ch)). 

This case has drawn widespread attention in the property sector, and rightly so — it challenges long-standing assumptions around insurance rent recoverability and landlord commission. 

Key Outcome 

The court concluded that insurance commissions rebated to a landlord — even when paid by insurers — were not a real cost to the landlord and therefore do not form part of the “premium payable for keeping the Centre insured”. As such, these sums are not recoverable as insurance rent under the lease terms considered. 

In particular, the court ruled: 

• The term “premium” must be interpreted in context, not in isolation. 

• Commissions rebated to landlords were not “payable” in a true sense and represented profit, not insuring cost. 

• Tenants subject to these costs may be able to recover them — subject to a six-year limitation period. 

Why It Matters 

This has serious implications for landlords operating multi-occupied buildings with block policies and commission-sharing arrangements. Leases must be carefully reviewed to ensure insurance rent clauses genuinely reflect recoverable costs. 

JPIC’s Role 

James Purvis, a leading insurance expert, gave expert evidence in this case. JPIC will continue to support our real estate clients to ensure any insurance rent related earnings they receive are fair, reasonable and reflective of recoverable cost. If you would like to discuss this topic further, please get in touch.