Contributed by Rosie Cisneros
Few homeowners are aware of the legal implications involved in something as simple as paying a neighbor’s kid to clean out the gutters or letting children shovel a driveway for a couple bucks. And when it comes to independent contractors that work on hazardous tasks such as roofing, tree removal and electricity, the danger grows exponentially. Most homeowners presume that their homeowners insurance policies provide more-than-adequate protection in the event they are sued for negligence or injury. Unfortunately, many are wrong – and the price of their ignorance could be as high as losing their home.
Consider Thurman Lawson, who was smacked with a lawsuit when a tree-service worker was injured on his property. Mr. Lawson contracted Eliseo Lascano, owner of Anthony’s Tree Service of West Covina, California, to trim a 50-foot palm tree in Mr. Lawson’s yard. Before work began, Mr. Lawson was even prudent enough to ask to see the contractor’s worker’s compensation insurance policy.
Unfortunately, that wasn’t enough to protect him. The business owner had shown Lawson an expired copy of his insurance policy and the homeowner never followed up to make sure he had a current one. The worker ended up suing Mr. Lawson after the homeowner insurer said the accident wasn’t covered by his homeowners policy. The California appellate court agreed and said that Mr. Lawson was financially liable. Homeowners are often targeted with personal injury claims. A survey in 2000 found that the biggest increase in all jury awards occurred in personal-injury cases where the median amount jumped 26 percent from the previous year. It’s stories like these that remind us not to rely solely on insurance policies and to be proactive in protection of our personal wealth.
Would a land trust prevent somthg like this happening
Land Trusts are most often much misunderstood. The primary benefit of a land trust is privacy. However, in the majority of land trusts, there is no actual protection from creditors. Asset protection encourages privacy, but never relies on secrecy to work. In general a land trust as a stand alone tool would not protect a home.