Whether you’re a landlord or a buy-to-let investor, you need to be aware of the potential dangers and damages that can be linked to your property. This is especially the case if you have tenants living in your property or you own a commercial space that’s open to the general public.
If a third party ends up having an accident or sustains an injury as the result of a problem with your property, they may seek compensation for damages. Not only can this have a significant effect on your finances, but also the associated legal expenses can add up to cause an even bigger dent in your bank balance.
The cost of compensation can rise depending on the seriousness of the injury and the effects on the third party. From medical expenses to loss of earnings through incapacity, all varying outcomes need to be taken into account when determining the level of cover you need.
Ideally, you will keep your property well maintained to prevent any glaring problems that could pose as a risk to others. Despite this, there’s always going to be an element of risk involved, no matter how unlikely. With property owners’ liability cover in place, you receive peace of mind that your policy can handle any third party claims if the worst should happen.
Each policy is different and depends on the person taking it out and the property they own. You could own a residential property occupied by tenants or a building accessible to members of the public to frequently come and go. You could own a single property or you may own multiple properties.
These factors, alongside how well you maintain the property, will generally indicate the level of potential risk. The higher the overall risk, the more likely it is that you may require a greater level of cover. Your policy will have an indemnity limit, which is the maximum amount that your insurance provider will pay for a claim.
Based on an assessment of your unique circumstances and your needs, you can determine the level of cover that’s appropriate for you. It’s common for policies to offer indemnity limits of £1 million, £5 million or £10 million. You may be able to request an alternative limit, but it’s important to remember that the limit you go for will affect the cost of your premium.
Before agreeing to a policy offer, you may want to make sure that legal costs will also be covered alongside paying for damages. This should also help you to decide whether your chosen policy will be a good fit for you and your property owners’ liability needs.
The property you own may not be open or accessible to others, but this does not necessarily make you exempt from liability. From unoccupied homes to derelict commercial buildings, it may be possible for people to gain unauthorised entry to your property.
The responsibility falls to you to ensure security is tight around the property, as well as to ensure it is safe and well maintained just in case of any visitors, whether you authorise them or not. Having property owners’ liability cover for an unoccupied building is, therefore, essential to keep yourself protected. However, your cover may come at a much lower premium.
It’s a commonly held view that landlords shouldn’t be held responsible if trespassers are injured as a result of your property, but this is not necessarily the case. In fact, it is well established that you will need to be aware of how other people behave, whether it’s youngsters breaking in for fun or criminals intentionally vandalising or stealing from your property.
Arkwright Insurance Brokers have a wealth of knowledge and experience when it comes to securing the right insurance for your unique needs. We work with a wide-ranging panel of providers to make sure we get you the right policy at the best possible price.
If you need more information of property owners’ liability cover, or to simply get started on finding a quote, call our team today on 01204 392 525. Alternatively, you can click the “Get a quote” button and send us a few quick details, so we can get back to you as soon as possible with the relevant information and options available to you.