claims question

Your response to industry hot topics.

Moderators: Josh, independent guy

Post Reply
Big Dog
Insurance Journal Addict
Posts: 274
Joined: Mon Apr 12, 2004 11:18 am

Re: claims question

Post by Big Dog »

Do you have a formal rent agreement with this person? If so, and it's properly worded requiring the tenant to be responsible for their own personal property no matter what, then you're not responsible.

If you don't, then you could be held legally liable for their loss.
HarrisburgAgent
Insurance Journal Enthusiast
Posts: 15
Joined: Thu Oct 27, 2011 11:49 am

Re: claims question

Post by HarrisburgAgent »

That is more a question of liability than one of coverage. If the tenant alleges that you were negligent in failing to prevent the fire, your policy should kick in and provide liability coverage to defend/settle the loss. Often times customers will discuss claim scenarios and I remind them I can advise on coverage issues, but liability and negligence are determined by a judge/jury.
yoyowordup
Insurance Journal Addict
Posts: 184
Joined: Wed Jan 05, 2005 1:43 pm
Location: The Valley of the Sun - AZ

Re: claims question

Post by yoyowordup »

I would think if you light a candle that causes a fire that you would most likely be liable for the damages that are caused. You have the responsibility of making sure this doesn't happen. Don't leave the candle next to the drapes or papers on a desk etc. Also need to make sure you kept an eye on it.

Were you thinking you might not be liable? If so, why?

Whether or not payment is due and payable for the damages may change depending on any contractural relationship. Do you have a hold harmless agreement in your tenant contract? Any other form of risk transfer built into the contract? The laws in each state also vary with respect to whether or not a hold harmless agreement is enforceable under certain circumstances.

Hopefully this is hypothetical and you did't start a fire.
HarrisburgAgent
Insurance Journal Enthusiast
Posts: 15
Joined: Thu Oct 27, 2011 11:49 am

Re: claims question

Post by HarrisburgAgent »

There are cases of candles being defective...

http://www.consumerwatch.com/household/candles.php

A defective one could explode and cause a loss, its more likely that there was some negligence on behalf of whomever lit the candle, but its certainly not a strict liability matter in my opinion. There still needs to be a "duty breached" and proximate cause to be responsible for the damages.
darnovak
Insurance Journal Addict
Posts: 106
Joined: Fri Jul 15, 2005 10:51 am
Location: Alyamont NY USA

Court decision re: liable

Post by darnovak »

Even though an insured's policy may exclude coverage under property or liability, the claimant can go to court (even small claims court) and if the court deems the insured 'liable' for the damages, the carrier (at least in my experience in NY) must pay - up to the policy limits of course. That's what the famous Love Canal case law was about. The policy(ies) excluded pollution but the court decided otherwise (re-defined the coverages and exclusions)and the carrier had to pay big time. I would consider a 'malfunctioning' candle as a possible product liability suit against the manufacturer, distributor, and seller. Good attornies go for every pocket out there.....
robmejia
Insurance Journal Addict
Posts: 78
Joined: Wed Oct 26, 2011 8:36 pm

Re: claims question

Post by robmejia »

I was wondering if a decision regarding your query has already been made and if you were held liable? If I was the tenant and knowing you were responsible for the fire, holding you liable for the damages, etc is just right.
Post Reply