Public Liability
Insurance UK
 
 
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When you purchase your
landlords property insurance, your policy will
come with a wide range of insurance perils. These perils are laid out in the
Council of Mortgage lenders handbook and whether you take buildings insurance on
its own or choose to accept contents as well, the actual perils covered are
fairly similar. The council for mortgage lenders lay down strict guidelines as
to the type of insurance perils that must be covered and one of the perils
specified relates to liability insurance.
A valuable inclusion under most
landlord property insurance polices relates to liability insurance cover. This
section of the policy normally provides an Indemnity (Indemnity simply means
than in the event of a valid claim, the insurance company will pay up, so if an
insurer agrees to indemnify you, it means they are going to pay your claim) ) of
anywhere between 1 & 5 million pounds, depending on the insurance company.
There are a number of different
liability issues that face a landlord and the first one is attached to the
building section of the policy and is usually known as property owners
liability. Sometimes confusion is caused by this term as lenders and banks
often refer to the cover as Public Liability. Many insurance polices have been
returned by lenders because they feel that the correct term is public liability
and not property owners liability. The correct term is actually the later as a
landlords building insurance policy will cover liability claims arising out of
ownership of the building but will not pay claims resulting from the landlords
other business activities.
Thus, this cover will provide an
indemnity to the policyholder for amounts that he or she is legally liable for
bodily injury or damage to property caused by accidents and occurring at the
insured premises. Importantly, this section of the policy will also cover the
cost of defence of a claim. Sometimes, liability claims are unsuccessful but the
cost of mounting a defence can still be costly and cover would be provided by
this section. An example of a claim under this section of the policy would be a
tenant, falling down the stairs and breaking a bone caused by the stair rail
coming loose. Injuries to tenants in the home are fairly common claims nowadays
as there seems to be a never ending supply of , no win, no fee lawyers that are
quite happy to take on potential injury claims on a no win no fee basis.
There are of course exclusions
to the liability section of the policy but these are really all common sense
exclusions and will be listed in the contract wording. If you are unclear on any
term or condition, your insurance advisor should be pleased to help out.
Another liability cover that
comes as part of a landlords policy or a home insurance policy is the public
liability which attached to the ownership or supply of the contents. Although
the value of contents provided by a landlord is low, a potential liability claim
for several thousand pounds could arise if the tenant injures themselves on the
contents supplied. It is vitally import to check any landlords contents
insurance policy to see if liability cover is included as not all of them do. As
these policies ( contents only) can often be obtained for only a few pounds per
week, it is false economy to buy a contract that doers not come with the correct
liability cover.
