photo credit: Meredith BellOne of the biggest worries for landlords is what will happen in the case of an accident occurring in a property that they rent out, or more specifically how much it could cost them if a tenant submits a claim for negligence against them. If somebody does have an accident as a result of the property, it is highly likely that you will be held legally responsible and a claim for damages could present you with a large bill.
Public liability insurance is the element within your landlords liability insurance policies that will help to cover the costs or damages that could be awarded against you as a result of somebody sustaining an injury or suffering an illness because of your property.
An example of this type of incident would be a tenant suffering an electric shock as a result of a plug socket being incorrectly installed or from a faulty kitchen appliance whilst they are living in one of your premises.
An increasing number of legal firms are offering their services on a ‘no win, no fee’ basis and recent figures suggest that this is leading to a significant increase in damage claims against landlords. Everybody knows that legal fees are high but not everybody realises how high, or what a long and involved process defending a claim can be and it is important to remember that even bogus claims need to be defended.
The cost of landlords liability insurance will depend on the number and type of the properties that you own, premiums are sometimes based on the size of the property but in the case of multiple occupancy premises, it may be based on the how many people are living there.
People who own plots or pieces of land also ought to consider purchasing public liability insurance as all the same risks apply to them if anybody is injured on the land.
Some home insurance policies automatically include public liability insurance but in the case of properties that are rented out, a more comprehensive and inclusive cover must be considered as the claims are likely to be much larger.
Quotes for Landlords Liability Insurance are available from www.landlordbuddy.co.uk