Vitesse
Well-Known Member
Could the OP perhaps engineer a situation where MIL was faced with a potential bill, just to put the frighteners on?
DAKA
Well-Known Member
MYStargazer
Well-Known Member
It can't work. There'd be no 'insurable interest' (see http://en.wikipedia.org/wiki/Insurable_interest) so no obligation for the underwriter to pay in the event of a claim. It's this that differentiates a contract of insurance from a mere bet.
HTH
jimmy_the_builder
Well-Known Member
Aha. So what you're saying is that Mike just needs to place a bet with William Hill that his MiL's hotel is going to burn down? Sorted! (Almost as good as Nick_h's suggestion...)
Cheers
Jimmy
benjenbav
Well-Known Member
Hang on a mo. One of our prerogatives (whilst we retain our marbles) is to go to hell in the handcart of our own choosing. She don't want to insure her property. End of.
MYStargazer
Well-Known Member
If Mike placed the bet with William Hill that the hotel would burn down, with good odds, then he'd get a good payout if it burned down: this would be the same as insuring it only Mike would get the money instead of the mother-in-law.
alant
Well-Known Member
What chance they would accept that bet?
Nigelpickin
Well-Known Member
Seems crazy that your MIL has a small business with paying guests and does not have a standard hotel or b&b package that includes liability, (which she must have by law), contents and buildings. Should be easy to scare her into a policy by getting her name onto some mailing lists and having her bombarded...For example, a trade such as a B & B must carry an FRA and that document would be redundant without the correct insurance. I think she has to have 2m public liability, notwithstanding the fact that she should be insured for loss of earnings should the place burn down, along with a payout for advanced bookers whom she will have to reimburse. These insurances are commonplace and it is very unusual that she does not have a standard industry package...I may have mis-read the post though, so apologies if that is the case.
petem
Well-Known Member
If Mike and his SWMBO are beneficiaries of her estate could that be argued as an insurable interest?
jfm
Well-Known Member
I thought about that when typing above replies but decided it was too complex and I didn't want to go there. But now you've raised it...!
You can insure an insurable interest. So Deleted User or mrs Deleted User can in theory go and buy a custom policy to insure him/her against loss of potential inheritance in the event that hotel burns down, and diminished by a % factor to deal with risk that MIL would have spent the estate while still alive or excluded Deleted User from the will during MIL's lifetime.
That would be a custom policy, negotiated with an u/writer, and to keep himself out of jail the u/writer might insure say 50% of the hotel value, on the footing that there's a sort of 50% (or whatever...) chance that Deleted User could be excluded from will or the estate could be diminished during MIL's lifetime by spending it. You'd need a free-thinking u/writer because one of the points of public policy in the "you must have an insurable interest" law is that insurers may not create incentives for humans to create outcomes that entail losses (=suffering) for others. This is why I can't insure your life - because I might just take you out in my boat and you might, er, fall over the side, accidentally of course. See my point? Anyway, most u/writers would think v hard about their responsibilities under that law, and why go there for a poxy premium? Anyway, if you overcame that little hurdle, this would cost megabucks in premium and be a right ball ache. not a telephone/internet policy for £500 premium from Direct Line
jfm
Well-Known Member
sarabande
Well-Known Member
does the local authority licence the hotel ? Or is there another authority involved in doing so ? And do they have a set of conditions including insurance (i.e. a 'star' rating system ?)
D
Deleted User YDKXO
Guest
Thanks to all for your replies and apologies again for posting this in wrong forum. I did contact the mods but I guess they're on strike or something. Yes, obviously the inheritance issue has crossed our minds but it's not a major issue. The major issue is that my MiL would be homeless in the event that her building was damaged and worse, that would probably mean she'd have to live with us
Also the hotel is in a terrace and if it goes up in flames, it's likely to take a few more houses with it and presumably then my MiL could be liable if negligence could be proved. We will have to redouble our efforts to make her see sense
Also the hotel is in a terrace and if it goes up in flames, it's likely to take a few more houses with it and presumably then my MiL could be liable if negligence could be proved. We will have to redouble our efforts to make her see sense
petem
Well-Known Member
Thanks to all for your replies and apologies again for posting this in wrong forum. I did contact the mods but I guess they're on strike or something. Yes, obviously the inheritance issue has crossed our minds but it's not a major issue. The major issue is that my MiL would be homeless in the event that her building was damaged and worse, that would probably mean she'd have to live with us
Sorry Mike, I wasn't suggesting that inheritance was your motive, more that inheritance would give you an insurable interest. Anyway, JFM has confirmed that it's a non starter.
Does she have a friend that she'd listen to, that you could lobby? Could you offer to pay the premium and say it's to give YOU peace of mind? Do you have a charming insurance broker (is there such a thing - apart from DoM) that you could give the nod to give her a call? Is there a seed you could plant to make her think it was her idea?
DAKA
Well-Known Member
I thought there was mention of a Public liability policy in place, that should cover her for houses either side if she leaves the chip pan on.
I think the council are able to force her to rebuild her hotel, I dont think she has the option to leave it burnt out and derelict, (not without planning permission) .
jfm
Well-Known Member
Hmm, the public liability might only cover her for her actions in furtherance of the hotel business. Would need to be checked
I'm not 100% sure but i don't think council can make you rebuild. English heritage can if it's listed but that's different. My house burned down (to the ground) some years ago. No-one in it btw - we were in Italy on the boat haha! The council said I needed PP to rebuild even an identical house.and while I disagreed and could have argued in court, I conceded on grounds life is too short That being the case, I don't think they could force me to rebuild. Rebuilding without PP is unlawful and they cannot force me to an unlawful thing. They wouldn't give me PP automatically - they said I had to apply and pay the fee, even for identical house. I never bothered applying for PP and never rebuilt it, and just kept the land and watched it grow in value, then sold it to a developer
DAKA
Well-Known Member
I'll happily accept the 'not 100% sure' bit , on this thread nothing really needs checking, its all about arming Mike with persuasive arguments ready to chat with his MIL over a bottle of wine (and a pen ready to sign the DD )
Mike as I mentioned earlier you should check teh cost of teh stand alone liability policy compared with an all inclusive package policy that covers B&C and throws the liabilities in for free.
Selective insurance policies can be disproportionately expensive .
gandacle
New Member
Yes, obviously the inheritance issue has crossed our minds but it's not a major issue. The major issue is that my MiL would be homeless in the event that her building was damaged and worse, that would probably mean she'd have to live with us
Now that's a genius idea - write an insurance scheme that insurers relatives against the losses incurred in having out-laws forced upon them by circumstances beyond their control. I reckon they'd be a decent market there!
Joking aside such a scheme would also tick all the legal and moral hazard issues mentioned earlier. Quick call to my mate at Hiscox I reckon!
petem
Well-Known Member
Would it be possible to quantify the pain inflicted on a MiL living with you? Surely no amount of money would compensate!
Momac
Well-Known Member
Is the property compliant with current standards and in an insurable condition ? Your description makes it sound rather run down .