Potential Liability

[scottbell]

What is the name of your state? Massachusetts

Hi,

Here is my situation. I am a homeowner who bought a house 5 years ago that has a 100 year old concrete garage that sits directly next to my neighbor's property. Due to a few decades of neglect the back wall is in very bad shape, so bad that my insurance company just told me that it needs to be fixed or they willl no longer insure it. (30 days) I got estimates to either fix the wall or demolish the entire garage and due to the cost ($3,500-$10,000) neither can happen for a few months.

So here are my questions:

1. When my ins co stops coverage on this, and something happens, like a peice of the wall falling on someone, what is my liability?

2. If something were to happen does the claimant stand a bigger "payoff" from my insurance company or me, personally? (I only make 60k) I ask this because my neighbor has sued several people in the neigborhood and I am trying to figure out if he alerted my insurance co with the intention of having them drop my policy...so he could sue me directly?

Honestly, I know this sounds all paints me in a pretty bad light. But in reality, my neighbor is a bad person who looks to benifit from other people's misfortunes. The part of my garage that is damaged is facing his back lot in an area that is almost inaccessble on foot. I know it's something that I need to take care of. But with all of the other work that I've needed to do, like the roof. The money just hasn't been there. Ok...enough with the sob story.

If anyone can offer some insight or advice it will be greatly appreciated.

Thanks,
Scott

 

[moburkes]

1. Your liability is 100%.
2. Anyone would have an easier time suing an individual vs. suing an insurance company. The insurance company's lawyers are included in your liability coverage. They are paid to defend you. There are LOTS of them. When they sue YOU, YOU have to pay for whatever lawyer you can afford.

 

[scottbell]

Thank you for responding moburkes. Your answer is what I was expecting.

My insurance co said if I cannot resolve the garage issue that I have the option to take it off my policy while keeping coverage on the remainder of my property.

My question is now, is the fact that my garage is not covered public knowledge? In the time that it takes to get this resolved can my neighbor inquire about my coverage status? I'm still going under the assumption that he is trying to get money from me and has set the ball in motion to have an easier lawsuit against me.

 

[moburkes]

No. It is not public knowledge. Your insurance company probably sent an inspector out to look for hazards, and they reporting the garage. They do this every few years.

 

[scottbell]

Yes, the last time the inspector was here was about 3-5 years ago. Just this time they went straight for my garage and really didn't pay much attention to the rest of the house. With my neighbor's history, it just seemed strange. Last year he sued another man in the neighborhood for harrasment in the form of "whistling". It didn't go far, but shows he's not afraid to file papers and try to set up a case.

Anyway, I'm expecting my ins co to cancel coverage on this so I'm weighing the options of fix vs demolish.

One last question, is it possible for my neighbor to initiate a lawsuit against my ins co, without me knowing, prompting my ins co to drop me as a liability?

I know I sound paranoid, but I believe the best way to avaoid bad sitaution is to get informed and think about worst case scenarios.

 

[moburkes]

I guess, but how would he know who your insurance company is? You generally sue the at fault party, not the insurance company. He wouldn't even know if his "claim" is covered by the insurance.

 

[scottbell]

His nephew is my mailman. I really have no reason to suspect that he's like his uncle, but no reason no to have suspisions either.

So, you're saying if he initiates a lawsuit it would come to me first and then I'd hand it over to my insurance company?

 

[moburkes]

That's not a question that I can answer. WHO KNOWS what he will do.

 

[scottbell]

I wasn't necessarily asking what he will do, but asking if there was a certain legal process in filing a lawsuit when an insurance company is involved.