Negligence?

[Kat Hem]

Jurisdiction

New York

I bought my first two properties two years ago in Rochester NY. Last year I switched car insurance companies and forgot to add back my umbrella policy. You guessed it, a meter was broken into at one property and RG Electric demanded a whole new coded meter that was out of stock for 6-7weeks. My general insurance denied my claim because it wasn't over my deductible at least the part that wasn't the city code issue, which wasn't covered. I didn't realize the power was off in one apt for an entire month after that until RG E turned all four units off a month after the tampering (past Thursday). I got the families to friends and hotels when they didn't have them, but it looks like it may be possible I am negligent for not offering a hotel to the first family who have a small baby, even though she had been staying w friends. I have the normal clauses in our rental agreement and with my property manager, but from what I am reading I could still be liable as the owner for the PM not verbally offering habitable housing. Any insights or advice?

 

[adjusterjack]

1 - You NEVER admit negligence to anybody. When you do, you prejudice your insurance company's right to investigate and defend.

2 - I don't see any negligence on your part at all and certainly no liability for paying for your tenants' temporary lodging. The damage to the meter wasn't your fault. The delay in replacing it wasn't your fault. The power shut off wasn't your fault.

I don't know what you are reading that makes you think you are liable. Perhaps you can quote it word for word here.

At any rate, if you want to pay your tenants' expenses or give them a rent rebate out of the goodness of your heart, you are certainly free to do that. I don't see your insurance company having any liability though.

 

[Kat Hem]

NY, live in TX


If I open an LLC or corporation and I am sued (NY) and they won against me for negligence/personal injury on my property there (no insurance), can the winners come after my assets in the LLC or corporation or would only garnish my wages?

 

[army judge]

If I open an LLC or corporation and I am sued (NY) and they won against me for negligence/personal injury on my property there (no insurance), can the winners come after my assets in the LLC or corporation or would only garnish my wages?

There is ONLY one method that protects a person (insulates a person) from a lawsuit, and that is for the person to carry enough liability insurance to shield her net worth (as in assets).

In some states a person's basic assets are protected by the state law or the state's constitution.

In our lovely Republic of Texas, our state constitution protects our homestead and a few other assets.

Even if one is lucky enough to call Texas home, he/she should still make sure to carry sufficient personal liability (and/or umbrella insurance) to insure her/his/their assets are covered.

It would behoove you to discuss how best to protect yourself with your insurance agent and your personal attorney.

Anything a stranger tells you could be incorrect or not applicable to you personally.

 

[zddoodah]

it looks like it may be possible I am negligent for not offering a hotel to the first family who have a small baby, even though she had been staying w friends.

Why do you think that? "adjusterjack" asked this same question, but you inexplicably ignored the question in your follow up post. I cannot conceive why you might think "not offering a hotel" to your tenant could possibly constitute negligence.

Also, what damage do you think your tenant might have suffered as a result not being offered a hotel.

If I open an LLC or corporation and I am sued (NY) and they won against me for negligence/personal injury on my property there (no insurance), can the winners come after my assets in the LLC or corporation or would only garnish my wages?

In the context of this thread, any effort to hide assets in a corporation or LLC would not be successful. In other contexts, the answer might be different.