Stark warning as landlord faces 1million Public Liability case
An ongoing Public Liability claim received by Total Landlord Insurance, which could reach in excess of £1million, presents a stark reminder to landlords of the need for adequate insurance cover.
In the last two years, public liability claims received by Total Landlord Insurance have reached an estimated £1.7million. These claims are the slips, trips and falls by tenants that have taken place at a property where the landlord is found responsible and although often unavoidable, without insurance protection such incidents can prove extremely costly for landlords.
In an ongoing case being handled by Total Landlord Insurance, the guest of a tenant, fell from a set of stairs and claimed that the stairs were not ‘fit for purpose’. Because the claimant is of a young age, if the landlord is found legally liable as a result of negligence, the cost of the claim is likely to escalate into several millions including ongoing care and loss of potential earnings.
Fortunately for the landlord in question, he is protected by his public liability insurance which not only covers any damages which might be awarded to the claimant but also the legal costs of defending the claim and the claimants’ legal costs if the landlord is found at fault. Legal fees alone are expected to cost hundreds of thousands.
This is a particularly extreme case, but without insurance, this landlord would have been responsible for all costs associated with this incident. Not only could he have risked losing his buy to let investment, but his own home too in order to cover the costs in defending his case.
Many landlords have very little idea of the level of their property insurance but this should serve as an eye-opener for anyone who has inadvertently cut corners when is comes to both property maintenance and insurance.
This case is on-going.
About the authorEddie Hooker has been involved in the insurance industry since 1985. He worked with many large insurers such as Legal & General and AXA Insurance prior to setting up his own insurance business, Hamilton Fraser, in 1996. Hamilton Fraser now employs over 130 staff out of their North London office, dealing with various insurance products for the buy-to-let property market such landlord insurance, rent guarantee insurance, emergency cover and tenancy deposit protection.
Eddie and Hamilton Fraser Insurance first started to provide landlord insurance as early as 1996 when they became involved with the Small Landlord Association, which later became the National Landlords Association.
By working closely with the industry’s leading companies Eddie and his team have built up a detailed understanding of the landlord market ensuring that the customer experience is founded on knowledge and support. This has been highlighted in a recent customer survey that found that 95% of Hamilton Fraser customers were either satisfied or more than satisfied with the service provided by the company.
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