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Blog: November 13, 2019

What does property owners liability cover?


Property owner’s liability cover is an important part of a homeowner’s insurance package. It is insurance that protects the owner from a claim made against them from a third party for a physical injury following an accident or illness that is linked to a property.

Keys and contract paper on a desk
Property owners liability insurance and what it covers

It can also protect you from claims made against your property for damages caused to third-party property resulting from the property.

Why do you need property owners liability cover?

Property owners have a legal requirement to ensure that their property is maintained to a sufficient standard. This means that are there no unnecessary risks that may result in injury or property damage to third parties. This can include tenants, visitors to your property or members of the public.

For instance, if a delivery person was to slip, fall or trip on your property because of a loose paving slab, the fault could be yours. You would be liable to pay compensation to the delivery person. Considering more people are shopping online, there is a growing number of deliveries being made, so this is a higher concern than it was previously.

What does property owners liability protect you from?

When you take out a policy for property owners liability, you’re protecting yourself from the claims of compensation made against your property from any accidents that happen there. This can also include the legal costs that are incurred because of court action.

The NHS might seek payments to cover their costs for treatment or ambulance service. Most property owners liability cover will also pay these costs.

Even if your property is found not at fault or the claim is false, the insurance will pay your legal costs. So you aren’t left with a hefty bill to pay when your property is deemed not at fault for the damages to a third person.

What level of cover do you need?

The level of cover that is required by your property will be dependent on your property. You will need to make an assessment of what the potential level of compensation could be claimed against you.

It is important to remember that a policy’s cover is for each claim made against you and not a cumulative level of claims. For instance, if you have a policy with a level of cover of £1 million and three claims at £400,000 each, you are still covered for all of it because each claim is treated differently.

Usually, the legal costs for any claim made on your property are also treated differently.

Do you really need property owners liability?

Anyone who owns a property should get property owners liability cover. It protects you from claims made against your property from anyone. The financial implications of having to shoulder the costs are immense, you might lose your property.

For just a little more monthly cost on your property’s insurance, having that peace of mind is worth the investment. And if you don’t need the insurance within the year, it might help to support lower premiums in the future due to the no claims bonuses on offer.


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