Tenant Hurt on Premises

[landlord2205]

Thank you so much, SChinFChin, for your input. My worries are now not being liable for the claim but having her insurance dropped. Like I said, the insurance co. never knew she had tenants. I filed the claim, they asked if he was a resident and I told him he was a tenant. I called back today to revise the insurance to cover five units....We'll see. I look at this whole experience as a wake up call! It could have been a legitamate claim that the insurance co. would have denied because they were not informed of having tenants.

[SChinFChin]

Thank you so much, SChinFChin, for your input. My worries are now not being liable for the claim but having her insurance dropped. Like I said, the insurance co. never knew she had tenants. I filed the claim, they asked if he was a resident and I told him he was a tenant. I called back today to revise the insurance to cover five units....We'll see. I look at this whole experience as a wake up call! It could have been a legitamate claim that the insurance co. would have denied because they were not informed of having tenants.

Based on "assumption of risk" grounds, it is unlikely your mom is liable.

Then, if it is a 5 unit property, and if the insurance was originally applied for one property on all 5 units, then the coverage should include some tenant units, even if she lived in one of them. The coverage should be amended to make it clear, if not already. We really can't tell without looking at your policy provisions.

I owned mostly 2 to 4 family units, and when I procure liability insurance, there is no question it covers tenants, even when the owner lives in one of them. On the insurance application itself, it's described as a multi-family unit, and in some instances, an insurance inspector comes by to check on it.