# Key Post: Do I need public liability insurance(key).



## sueellen (18 May 2002)

I am renting a 2 bed apt and I was just wondering do I need to take out some type of Public Liability Insurance to cover my tenants and people that come to visit them.


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## mf (18 May 2002)

*Re: Do I need public liability insurance*

It's probably a good thing. What do other investors think? What about non apartment  properties? 

The property will be covered under a block policy for the entire complex. Check your policy first - it should be with your Deeds or else check with the managing agents to whom you pay your annual servcie charge and ask them for a copy of the policy. If they don't have it they should be able to tell you who the broker is. 
If you then have concerns as to whether you are covered, ask a broker to check over the policy for you. 

mf


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## Wings Of Chicken 1 (18 May 2002)

*Re: Do I need public liability insurance*

Hi <!--EZCODE BOLD START-->* jmag*<!--EZCODE BOLD END-->,

Essential. You - as owner of the apartment - have a duty of care to your tenants, their visitors, and indeed passers-by. The block policy mentioned by <!--EZCODE BOLD START-->* mf*<!--EZCODE BOLD END--> will usually provide Public Liability cover ('Owners Liability') in the event of any or all owners being held negligent for:-

(a) bodily injury sustained by tenants, visitors, passers-by, and even trespassers (!)
(b) damage to their personal property

However, the policy is unlikely to include 'Occupiers Liability'. As the title suggests, this provides Public Liability cover for the tenants, in the event that they are held liable for injury or damage to visitors, etc. The lease agreement probably requires it anyway, but make sure that your tenants effect a Contents policy for their own possessions. This will include 'Occupiers Liability'.

Wings


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## jmag (27 May 2002)

*Do I need public liability insurance*

Thanks for that, where is the best place to get 'Occupiers Liability', and how much should it cost?

Is there any other insuraces I should know about.


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## Wings Of Chicken 1 (28 May 2002)

*Re: Do I need public liability insurance*

Hi <!--EZCODE BOLD START-->* jmag*<!--EZCODE BOLD END-->,

You don't need 'Occupiers Liability' cover yourself if you are not living on the premises. It is the tenants - as occupiers - that must effect the cover, and should normally be required to do so by the Lease Agreement. 

There is no charge (usually) for 'Occupiers Liability' cover. Just as 'Owners Liability' cover for you comes free as part of your Buildings insurance, so 'Occupiers Liability' for them comes free as part of their Contents package (that they need to arrange).

Wings


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## rory (18 Jul 2002)

*Re: Do I need public liability insurance*

Hi,

In the event that tenants don't take out their own contents insurance (which would include the Occupier's Liability as mentioned above) could I have a clause in the letting agreement that would indemnify myself against any liability that would otherwise be theirs?

Thanks,
Rory


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## Wings Of Chicken 1 (20 Jul 2002)

*Re: Do I need public liability insurance*

Hi <!--EZCODE BOLD START-->* rory*<!--EZCODE BOLD END-->,

You will need to have your Solicitor consider whether such a Clause is needed, and if so, to draft a suitable wording as a Special Condition to the Agreement.

In my own case, the Solicitor would only add that the Tenant insures his Contents for Fire & Theft cover and provides me with a copy. The Solicitor's view was that I could not be held liable for Occupiers Liability, as I do not "occupy" the premises. 

Wings


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## Chevy (4 Jul 2003)

*Tenented Property Insurance*

This is a variation on Jmag original post.

What insurance is required for an Apt block which has an annual service charge. I rang the management Company and they told me the policy covers Buildings and Public Liability for the Gardener and Cleaner ONLY!

Therefore, assuming a worst case scenario and the building is destroyed by Fire/gas explosion. 
Who is liable for any injury or otherwise caused to tenants?
What insurance would cover this exposure and who is liable to pay?

Chevy


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## modestus (26 Nov 2003)

*Public Liability Insurance on Rented Property*

The question was interesting-I wuld be interested in the reply if you received one as this is a murky unclear area -is it the obligation of a tenant to insure for contents under a Standard Lease ?


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## Wings Of Chicken 1 (1 Dec 2003)

*Re: Public Liability Insurance on Rented Property*

*modestus*,

Obligation would normally be for the tenant to pay towards the cost of the 'Block' policy rather than for tenant to arrange a contents policy.

Per *Chevy's* question (which I missed due to long absence from here mid-year)....Where the building is destroyed by Fire/gas explosion, the 'Block' policy would come into play.

Wings


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## modestus (8 Dec 2003)

*Public Liability Insurance*

I wonder is the payment of the Contents Insurance by way of refunding the tenant the cost of samre,whether same is deductible as a Fit out Section 23 expense or alternatively a deductible allowance in respect of rented property


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## Tomo (9 Jan 2004)

*Public Liability Insurance*

I see no reason why this would nit be an "allowable Deduction" as the expense is associated with the property


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## jmag (16 Jun 2004)

*my contents*

OK, now we are getting somewhere. Thanks for the replys. 

What insurance, if any do I have to take out on the apartment, besides the Block Policy. Or is that I only need to get the tenants to take out a contents policy?

What happens if say my TV in the apartment gets stolen, or the cooker blows up and one of my tenants sustains injuries as a result, what policies cover these.


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## dovest (30 Jul 2008)

I have Landlord's Contents Insurance on each apartment I own. This insures the furniture and appliances etc that I provide. But more importantly, this policy provides me with public liability cover in case a tenant, or visitor, is injured while using the furniture or appliances.


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