Forums / Getting Technical / Legal & Accounting / renters liability in rented house ? Don’t knw if anyone offer this type of insurance?

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Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of ciciwxciciwx
    Participant
    @ciciwx
    Join Date: 2009
    Post Count: 9

    Don’t knw if anyone offer this type of insurance?

     

    Hey

     

    I rent a house at the moment and share with 3 girls. Lease under my name only, they are house mates.

     

    I also own 2 IPs.

     

    I was chatting with an IP investor the other day. He said if someone cause fire and burn down the house etc….  Even though the landlord’s insurance will cover it, the insurance company will still chase the person cause the damage and recover as much as they can. If so, then any assets under my name can be threatened.  Is that right?

     

    I want to know if there is any type of insurance that can cover this type of liability. The Renters insurance on the market is only cover the renter’s content.

     

    Thanks very much !!

     

    Profile photo of Adam LaytonAdam Layton
    Participant
    @adam-layton
    Join Date: 2009
    Post Count: 7

    Hi Ciciwx

    You're talking about insuring yourself against adverse judgments by a Court.

    I'd be surprised if you could get insurance for that – the risk would be too high for most underwriters I suspect.

    An insurer could certainly pursue you if there was some sort of negligence or deliberate conduct on your part which contributed to the damage to the property.

    If it's something that concerns you, you could look at structuring your ownership of the IPs for maximum asset protection, and doing what you can to make the IPs unavailable to satisfy a judgment against you.

    Cheers
    Adam

    Profile photo of ciciwxciciwx
    Participant
    @ciciwx
    Join Date: 2009
    Post Count: 9

    thanks very much for your help !

    Cheers !

    Profile photo of lifeXlifeX
    Member
    @lifex
    Join Date: 2004
    Post Count: 651

    You would only have to take out a public liability cover…. the same one that a homeowner takes out with their landlords insurance. You do not have to take out cover for replacement of the building.

    We do this with a rural property that has no dwelling, to cover us as landlords if someone is injured on the property. You could take out the same public liability insurance as a tenant on a building.

    However as a tenant, there would be very few things that could go wrong and that you as a tenant could be proved as a negligent person.

    …. unless you like practical jokes with fireworks in someones underpants.

    So, basically …. harden up. If you are really interested in asset protection, look at trust structures to minimise exposure.

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29

    I think this may be the point of liability insurance – you will find that most contents policies have this (though I would have my housemates on the policy).

    I experienced this first hand where my tenants accidentally flooded my unit (and subsequently those below!) through their apparent negligence. Their insurance covered their liability as I understood it – I didn't see any claim of liability (nor should I have – I didn't undertake any action to be liable for!).  I also had liability insurance.

    It did teach me something very important though – contents insurance provides you with xx Million of public liability insurance inside and OUTSIDE of the home. I saw a good example on some dodgy current affair show that explained that a guy who accidentally hit another person with a golf ball, causing brain damage, would have been covered by such insurance. (as it stands – he didn't have the insurance and both parties suffered).

    I would never rent without comprehensive contents cover w/liability.

    Asset protection is always a good fallback though.

    ciciwx wrote:

    Don’t knw if anyone offer this type of insurance?

     

    Hey

     

    I rent a house at the moment and share with 3 girls. Lease under my name only, they are house mates.

     

    I also own 2 IPs.

     

    I was chatting with an IP investor the other day. He said if someone cause fire and burn down the house etc….  Even though the landlord’s insurance will cover it, the insurance company will still chase the person cause the damage and recover as much as they can. If so, then any assets under my name can be threatened.  Is that right?

     

    I want to know if there is any type of insurance that can cover this type of liability. The Renters insurance on the market is only cover the renter’s content.

     

    Thanks very much !!

     

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29

    And living with three girls can equally be dangerous ;)

    ciciwx wrote:

    Don’t knw if anyone offer this type of insurance?

     

    Hey

     

    I rent a house at the moment and share with 3 girls. Lease under my name only, they are house mates.

     

    I also own 2 IPs.

     

    I was chatting with an IP investor the other day. He said if someone cause fire and burn down the house etc….  Even though the landlord’s insurance will cover it, the insurance company will still chase the person cause the damage and recover as much as they can. If so, then any assets under my name can be threatened.  Is that right?

     

    I want to know if there is any type of insurance that can cover this type of liability. The Renters insurance on the market is only cover the renter’s content.

     

    Thanks very much !!

     

    Profile photo of keikokeiko
    Participant
    @keiko
    Join Date: 2008
    Post Count: 513

    i have heard that if you rent a house and the tennant burns the house down the tennant is liable, it is stupid as no tennant takes out insurance to cover this

    Profile photo of ciciwxciciwx
    Participant
    @ciciwx
    Join Date: 2009
    Post Count: 9

    hi, Thanks very much. Everyone!  For your time and good advise.

    I just bought a Home content insurance with 20 m Legal liablity.

    Have a great day ahead !

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