Anyone been sued ?

[Patosan]

Well I haven't been yet, and hopefully won't. Nonetheless I would be less than prudent to not to seek further advice on this sordid topic.

Several threads ago someone mentioned that if a person was to lose just 1 or 2 IP that wouldn't be too bad ... hmmm. Perhaps I'm tighter than a fish's xxxx but I don't envy that prospect.

Then another mentioned that losing an IP that was over 90% mortgaged wouldn't be as bad, presumably since they didn't own it.

So what is the reality; if you are sued for whatever reason and your privately owned IP is heavily borrowed against, can you lose it anyway ? Leaving you with no asset but a nasty loan. I'd assume that the lender might not be happy about the asset being seized, but they'd be after you not the person sueing you, wouldn't they ?

Is keeping your privately owned IP maxed out a form of protection ?
Does anyone have 1st hand experience on this terrible situation ?

 

[geoffw]

If you had the property in your name (you mention privately owened IP), you might not lose only your IP, but also any other assets. Including your PPOR. So keeping the IP maxed out would not help.

Obviously public liability insurance would help.

It's probably too late (or too expensive) to put it into a trust.

 

[Patosan]

The intention of the question about keeping the IP maxed out was that the PPOR would be also.

Can they take your Super also ?
Not that I have much there and am considering cancelling plans to put heaps there, instead using the cash within the Trust IP structure.

Public Liability Insurance ... hmmm.
Is there much of it around ?
Is it expensive ?
I imagine there are a thousand special criteria to pass for acceptance then for payout.

 

[Kevmeister]

If a property is mortgaged, my guess is that the bank is first in line to recover their loan and any proceeds remaining could then be used to "pay out". Not the other way around.

So if you have a property at high LVR then it simply means you have less equity in it and therefore less to "take".

Of, course, this is only an opinion.

 

[XBenX]

Originally posted by Kevmeister
If a property is mortgaged, my guess is that the bank is first in line to recover their loan and any proceeds remaining could then be used to "pay out". Not the other way around.

So if you have a property at high LVR then it simply means you have less equity in it and therefore less to "take".

Of, course, this is only an opinion.

True because they are a secured creditor, so they get first bite at the cherry.

Actually i think its goes

1/. Taxman
2/. Secured Creditors
3/. Unsecured Creditors

 

[XBenX]

Originally posted by Patosan
The intention of the question about keeping the IP maxed out was that the PPOR would be also.

Can they take your Super also ?
Not that I have much there and am considering cancelling plans to put heaps there, instead using the cash within the Trust IP structure.

Public Liability Insurance ... hmmm.
Is there much of it around ?
Is it expensive ?
I imagine there are a thousand special criteria to pass for acceptance then for payout.

Public Liability cover aint that expensive

For units the common areas will have public liability insurance taken out by the body corporate.

The for houses and the areas you own within a unit you need seperate cover - this is usually part of landloards insurance (usually 20m or 40m cover)

 

[Patosan]

Oh that plublic liability insurance !

I thought there was a new insurance against being sued by anyone, not just by those somehow connected to your properties.

 

[brains]

Originally posted by Patosan
The intention of the question about keeping the IP maxed out was that the PPOR would be also.

Can they take your Super also ?
Not that I have much there and am considering cancelling plans to put heaps there, instead using the cash within the Trust IP structure.

Public Liability Insurance ... hmmm.
Is there much of it around ?
Is it expensive ?
I imagine there are a thousand special criteria to pass for acceptance then for payout.

My business has a $10 million PL policy which costs about $1000 per year, i dont know if it would be a different cost for individuals but i wouldnt think so. And yes its everywhere.

 

[paulzag]

PL policies are priced by industry.

My business PL policies for $10M cost $1,800, $600, and $5,500. I think my Landlords policy includes PL and that costs about $400 p.a.

XBenX I don't think the Taxman ranks 1)

Insurance companies are in business for profit guys. After 3 years of investment losses and large claims they are hurting. Couple that with the withdrawal/failure of regional re-insurers means premiums can only move in one way.

FWIW my business premiums have increased 30%-100% depending on coverage.

Regards

Paul Zag
Dreamspinner

 

[john doe]

Hi,

To the quesiton above of can they take your super if you are sued....yep, sure can. But there's a cap on how much. I can't remember the exact figure. WIll need to look it up when I get home.

Cheers

John

 

[Patosan]

Sorry guys I'm still a little foggy on the liability insurance point.

Of course any property related incident would be taken care of by the usual public liability cover, which is indeed a cheap cpmponent.
Some have mentioned liability cover by industry ... making me feel that it's a work related type of cover.

But what if I'm to be sued for something totally unrelated to the IP or work ?
Is there cover for the likes of :

a. On my bicyle I accidentally knock down and kill someone's grandmother.
b. On my bicycle I ntentionally knock down and kill someone's grandmother.
c. I'm on my bicycle again but I've been drinking and accidentally knock down and kill someone's grandmother.
d. After knocking down but not killing someone's grandmother, of course on my bicycle, we get into a fight, I punch her lights out. She's in hospital for month's and sue's for lost income, mental anguish, etc.
e. Me and someone's grandmother are drinking in a shady nightclub somewhere, bicycle's parked outside, after a few too many drinks she's starting to look pretty hot. So I make a not too subtle move on her. She's offended that I took too long, refuses , we get into a brawl and she ends up in hospital having a miscarriage for a baby I didn't know she was carrying.

Is there an insurance animal that can cover me for these types of situation ?
Or is putting everything into my trust the best measure ?

 

[Joe D]

Simple .........sell the bicycle!

Joe D

 

[bundy1964]

Hi Patosan

I think any insurance would only cover you for A.

Not sure if anyone will do 3rd party on a bike........is this an opening for more gov intervention?

bundy