Landlord liability - gas leak, appliances, balcony, windows..

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

4y

A lot of focus on this board is about eviction nightmare but it is nothing compared to being involved in a gas explosion lawsuit that causes your tenant severe injuries or even death. There is no umbrella insurance policy large enough to protect a landlord from these lawsuits.

How many landlords actually do these things to mitigate their liabilities in the event of an accident caused by the following?

1. Gas stove - do you hire a licensed plumber every year to inspect your gas stove to make sure there are no leaks or defects ? Will this help mitigate Landlord liability in the event of a gas explosion due to gas leak? I don't think landlords care until an accident happens. Of course, if the tenant reports gas leak, the landlord would fix the problem right away. I am talking about landlord being proactive and initiate an annual inspection as a precaution and also as a measure to mitigate his/her liability, how many landlords do that?

2. Balcony or Floor to Ceiling windows in high rise apartment buildings - do you hire a certified engineer or architect every 3-5 years to inspect the structural soundness of balconies and floor to ceiling windows to make sure they are built to code and do not need repairs due to wear and tear over the years? Imagine the liability a landlord faces if someone leans against a floor to ceiling window and the window collapses in a high rise apartment. How many landlords care of these things, especially for older apartment buildings in cities like new york.

Any of these accidents will result in huge liability and even jail time if the landlords is found guilty of negligent, far worse than having to evict a tenant, yet i don't see much discussions in this forum about these aspects of landlording.

Would appreciate feedbacks from fellow landlords.

Gas leak deaths are rare. In a year, there are approximately 40 deaths from gas leaks. You're more likely to die from lightning.

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Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

4y

Get an umbrella policy. For every landlord with a gas explosion (if there are 40 per year, maybe 10 are rentals?) at least 1000 landlords hit someone with their car or cause an injury personally.

You want an insurance company with millions on the line providing free legal defense for you. It’s probably a toss up if landlords lose more in lawsuits or defending against lawsuits.

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Mary Joe

OP

Investor · Brooklyn, NY · Member since 2013 · 254 posts · 28 votes

4y

@Nathan Gesner @Bill B.

Thanks both. Do you think doing the following will be sufficient to convince the judge NOT to prosecute the landlord in the event of a gas explosion that cause injuries or even death to tenants?

- hire a licensed plumber to inspect for gas leak and gas pressure on the gas stove annually.

-install a gas leak detector or alarm in the rental unit

-spell out in lease agreement that tenant is prohibited from removing the gas leak detector and that tenant must notify landlord immediately if at any point the detector stops working

-do semi annual walk through inspection of the rental unit to make sure the gas leak alarm stays installed and is working properly and that the gas stove is working properly.

Is there anything else we as landlords can do to minimize our exposure to being sued in the event of a gas explosion in the rental unit ?????

What else can landlords do to prove to the judge that we are not negligent ??

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Bjorn AhlbladPro Member

Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes

4y

I don't have any gas appliances but I check handrails and slippery areas. I also carry adequate liability insurance-4 mill. I sleep well at night.

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Andrew SyriosPro Member

Moderator

Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes

4y

I think that will do the trick. There's only so much you can do. But you can always talk to an attorney if you want to make sure you've covered every angle.

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Mary Joe

OP

Investor · Brooklyn, NY · Member since 2013 · 254 posts · 28 votes

4y

Quote from @Bjorn Ahlblad:

I don't have any gas appliances but I check handrails and slippery areas. I also carry adequate liability insurance-4 mill. I sleep well at night.

Thanks, is it true that liability insurance can only protect us for as long as the judge does not rule negligence on the part of the landlord in a lawsuit? So in the end it's still up to the landlord to take all the necessary precautions on every level possible regardless of how much insurance we get , correct?

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Dan H.Pro Member

Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes

4y

I think every investor should have adequate asset protection.

I have a large umbrella policy on top of the property insurance. If you are well insured, if you are not doing anything that is stupid reckless, you will be covered. Not only that but a large umbrella policy will guarantee that the umbrella provider has a stake in any lawsuit and will be providing representation.

So instead of worrying about anything that can go wrong (the list really would be long), make sure that your property is adequately maintained and that you have proper asset protection. I use large umbrella policy, but an LLC that cannot be pierced, etc. can also work. As indicated the umbrella policy guarantees you have a heavy weight on your side.

I sleep well and do not worry about everything that can go wrong.

Good luck

1 Reply

Greg M.

Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes

4y

You are way over-worrying about this. A $3-$5 million umbrella policy will protect you in most situations. Yes, massive judgments can occur, but they are a rarity and many times they are greatly reduced upon judicial review or settled between the parties after the initial verdict. You only hear about these because they are outside the norm. If you're really scared or wealthy, get a $10 million policy.

For you to be found negligent for a gas leak or a balcony failure, you'd have to have reason to know there was an issue or you would have had to failed to inspect when the standard course of action was to do routine inspections. That doesn't mean you can't be held liable.

There are also different levels of negligence. Insurance will cover ordinary negligence. Think of it this way, you're driving and go to change lanes without fully looking and you hit another car. You were negligent for failure to properly look. Of course your insurance is going to cover this. Then there is willful negligence, which would be when you knowingly engage in negligent conduct or intentionally disregards the risks to others. This would be you driving your car when you know the brakes are so bad they may not work and you hit someone. Insurance is not going to cover this.

And judges don't prosecute people. District Attorney's make the decision to press charges (contrary to TV, not the person harmed or the police) and prosecute people. It would be a rarity for a DA to spend their limited resources going after a person whose inaction caused harm - especially so when inaction is the standard procedure for the issue.

2 Reply

Mary Joe

OP

Investor · Brooklyn, NY · Member since 2013 · 254 posts · 28 votes

4y

@Greg M. I can't THANK you enough for talking some sense into me. Your post helps calm my nerves for sure.

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Landlord liability - gas leak, appliances, balcony, windows..

Landlord liability - gas leak, appliances, balcony, windows..

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