Posted by John on September 30, 2008 at 17:30:34:
Thanks, I havne’t contacted them but I will. thanks again.
Tenant Lawsuit – New Owner - Posted by John
Posted by John on September 30, 2008 at 10:44:14:
Hi everyone, I just purchased a 4 unit building, my first one, i saved up the money, put 20% down, the numbers are good, everything was going good. I have had the property 3 months and I found out today that a tenant has fallen on the stairs and had to be rushed to the hospital. I have insurance on the building but a friend of mine said that doesn’t matter, the tenant who fell could go after me and “own my building”, plus chances are they will go after my other assets, essentially me loosing everything before I even get started. I’ve worked very hard, saving money, etc to do everything right and this happens. I had every intention of moving the property into an LLC but was having concerns about the bank not approving, how to exactly do it, etc. Now I’m shaking in my boots worrying I’m going to be on the streets or working to pay off a lawsuit. For the record, the lady gets a government check, so she can’t claim loss of wages. But she could claim pain and suffering. Also, where she fell, it was well lit and there was no damage to the stairs or anything of that sort. But I was told that doesn’t really matter, I am still liable and chances are good I could loose everything. Any words of wisdom would be very much appreciated.
How your Liab. pol. protects you - Posted by John Merchant
Posted by John Merchant on October 25, 2008 at 09:15:40:
If you report this now to your P&C Co they’ll owe you the duty of trying to settle this within your policy limits (e.g. $100k-500k policy provides up to $100k per person injured or killed and $500k total for more than 1 injury or death).
And if they can’t settle it then they’ll pay to have one of their experienced defense lawyers defend the lawsuit, if indeed one is ever filed.
With a decent P&C policy it’d be highly unusual for it not to be settled within policy limits because ordinarily the insured (you and me) won’t have any real substantial assets* to go after even if the injuries and damages are horrendous and gigantic.
The ins. co. would offer “pol limits” and the experienced plaintiff’s lawyer would likely persuade his client to settle for that because of the likelihood of your having nothing else.
*this is why Jeffrey Taylor, “Mr. Landlord” drives an old beater car when he goes to see his tenants, plus giving them his business card which says he’s an “Assistant Property Manager”. And of course he never has any property in his own name, so the tenants can’t easily see that he’s the real owner.
Keep Your Head on your Shoulders !!! - Posted by Jimmy
Posted by Jimmy on October 01, 2008 at 04:46:58:
- why did tenant fall? did he stumble? was he drunk? did he trip on a toy his son left out there? please tell us what you did wrong (or wrongly did not do) to cause or facilitate this fall?
AND WHOMEVER TOLD YOU “IT DOES NOT MATTER” IS A MORON. I practiced for 20+ years, and it absolutely does matter.
-
do you carry general liability?
First thing is always - Posted by Rich-CA
Posted by Rich-CA on September 30, 2008 at 19:52:42:
contact your insurance agent and see if a claim is worthwhile (for some things, its not worth the hit on your claims history). If the agent agrees, open the claim and get all the info into their system. Get an adjuster out there YESTERDAY. The adjuster will be able to tell you if you have a liability exposure (such as damaged stairs or some such). Then you can contact the tenant, give them the contact info and claim number so they can get their info into the system. It shows that their injury matters to you and may lower the level of hostility that causes people to sue.
Re: Tenant Lawsuit – New Owner - Posted by Sailor
Posted by Sailor on September 30, 2008 at 17:04:21:
Get your legal advice from your attorney, not your friends. Have your reported this to your insurance co? They w/provide an attorney if & when you are sued & they choose not to settle.
You’ve learned some important lessons already; however, this is probably a nuisance case, so do what is necessary to resolve it & make sure you also protect yourself from this day forward. Good luck to you, & be sure to let us know how this ends.
Tye