Published in the Coffs Coast Advocate on 9 August 2014.
This week’s column highlights the importance of home insurance and its value in cases where a personal injury has occurred.
John and Karen own their home in Coffs Harbour. They have a small mortgage over the property and have taken out insurance cover with a well-known Australian insurance company for their home and its contents.
One of their older friends, Marjorie was visiting them at their home one day and walked up the wooden stairs at the front of their home towards their wooden deck. Unfortunately, when she reached the third step, the step collapsed. Marjorie fell to the ground, and as a result of the impact, she fractured her arm.
John and Karen were aware that some work needed to be done on the stairs but thought that it wasn’t urgent. It was John and Karen’s intention to have the stairs repaired at some stage in the future when they had the money available. They did not realize that the stairs had been subject to rot and that the stair had rotted away enough for it to collapse.
Several months later, John and Karen receive a letter from Marjorie’s solicitor advising them that Marjorie wishes to make a claim for personal injury arising from the fall. John and Karen are upset as Marjorie is their friend and they also believe that they may be personally liable for the claim for personal injury.
John and Karen see their solicitor who informs them that it is most probable that their home and contents insurance will cover them for public liability in these circumstances. Fortunately for John and Karen, their solicitor examines the policy and ascertains that they are in fact covered.
John and Karen therefore are able to approach their insurance company with the claim and the insurer informs them that they will be able to handle the claim without any payment by them apart from a small excess of $500 under the policy. This is a great relief to John and Karen.
Your individual circumstances may differ and this column cannot be relied upon as legal advice.
