Some Aspects of Property Liability Insurance
It is mostly taken for granted that every professional who takes part in real estate transactions is fully insured for liability. The agents and brokers who handle the sale, the home inspectors and contractors who certify the condition of the property and the escrow holding company are all liable in the case of a failed. Subsequent to the sale, they may still be liable is the buyer finds that the condition of the property is different from that represented. Real estate is a high stakes market in many areas that could not continue to function without the protection afforded by liability insurance.
Property ownership is fraught with liability issues. When structures or vegetation overhangs neighboring property it can provide a hazard. Usually, property, especially open land ownership is protected by private property warnings and disclaimers that warn trespassers that they enter the property at their own risk. However, an interesting aspect of land use and liability has arisen due to the popularity of mountain biking.
Potential mountain bike and hiking trails often traverse both private and public property. The private landowners and public land managers involved must make decisions about mountain bike access based upon the potential liability if they allow hikers and mountain bikers to use the property.
Fear of lawsuits prevents many sports enthusiasts from using a many great trails. The owners cannot bear the liability. An emergent type of law focuses on recreational use liability. Within this new framework, liability is defined as being responsible for someone else's personal injury due to negligence, as in accidents on an improperly maintained sidewalk. It is argued that this concept does not apply to open land. In order to be negligent in this setting, the property owner must do something gross like leave explosives out in the open.
Most landowners are protected by the recreational use statute, which is mandated by each state and varies accordingly. However, they are similar and most agree that when a property owner allows people to use their land recreationally for free, the property owner is exempt from personal injury lawsuits. It is important that the use is offered free of charge; payment will place the entire matter into the realm of business law and liability. State laws vary in some important details, such as the responsibly of a landowner to identify or warn about known dangers. However, when a property owner allows the public to hike or ride their bikes on private property for free, the private landowner is in most instances not liable for and injury sustained during such use.
by Sally.Anderson 19 years ago