07/02/12

Don't slip up on risk responsibility

Ian Gregory, of MPW Insurance Brokers, Maidstone, offers some valuable tips for property landlords.

If you rent your property, the lease may specify that parts remain in your control and do not form part of your tenant's demised area.

This is particularly likely if you have several tenants in your building sharing facilities such as stairways, halls, landing and external areas comprising car parks, drives and paths.

If this is the case, you will then have a potential responsibility should persons be injured or property damaged due to a defect in these areas and will not be able to pass these on to your tenants.

In the event of a claim being made against you, defence may not be possible unless you can demonstrate you have assessed the potential risks and then put in place a reasonable system of check, whereby you monitor the premises for defects such as a loose stair carpet or defective paths and then respond to remedy them within a reasonable period.

During winter conditions, you need to consider how you will discharge your obligation of clearance of snow and ice in external common parts areas that remain your responsibility. You may perhaps enter into an agreement with one of your tenants or appoint a contractor to take on the risk.

There is a popular misconception that snow should be left uncleared on the basis that a poor attempt at clearance could increase your liability. However, it is clear is that you do need to positively respond to adverse conditions.

Insurance protection for potential claims is available and should be selected by all property owners and occupiers as a matter of course as part of your portfolio's insurance coverage.

MPW has more than 25 years' experience and knowledge of the management of property insurance portfolios.

We can advise on appropriate levels of cover and also assist in assessing the risk and devising suitable check lists and other documentation to streamline the management of potential exposure.