Coach House Insurance Is A Complicated Issue

 

In the event of damage to the coach houses structure as a result of an event which happens in the garages, caused by any one of the coach house owners, the person who insured the garages must claim on his policy regardless of who and how the damage was caused. I imagine as coach houses continue to be built and people live in them for longer - the industry will begin to hear of disputes between coach house owners and the liability of any damage caused by an event in the garages! The policy holder will be obliged to claim, and ruin his insurance reputation for a neighbor, and this could cause tension.

 

Would you want to claim on your insurance, loose your no claims discounts and have to declare claims to future insurers resulting in higher premiums for an incident that had nothing to do with you?

 

In the event of a claim of significant proportions (total loss, structural damage or an explosion for example) - it could event render the policy holder uninsurable in the future! And if the policy holder sells that property and buys another - all claims will have to be declared and will increase the cost of future buildings insurance for up to 5 years, if they can get insurance again at all. Usually with any total loss claims - the policy holder themselves will have to wait until 5 years has passed before they can get insurance at normal rates again. Most insurers will also decline any total loss insurance applicant until 5 years has passed.

 

There is no way the other coach house owners can be named on the policy that covers the garages including leases - because they do not legally own the garage and have merely a lease (albeit usually a 999 year lease), they cannot be named as an interested party on the policy. Therefore, in the event of a claim, it is the policy holder who is claiming regardless of responsibility.

There are usually significant areas of shared driveway space with these plots too, Is this a liability nightmare too perhaps?

 

There are policies available to cover these risks, although they can be difficult to find! Most insurers are shying away from this complicated minefield of liability. It can be very difficult to find the right policy for you. You will need to invest some time in making sure that your policy is the right policy for you, and suits your needs perfectly!

 

March 26th 2013

 

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