Question

Describe how an unrelated tenant in common or joint tenant should protect him- or herself from potential liability (for negligence, injury to guests, or casualty loss) if his or her fellow tenants are not willing to buy insurance to do so?

Answer 1

Tenancy in common (or Tenant in Common): This is an arrangement between two or more people as a co-owner for the same property, but with no right of survivorship to the other. (Means if A dies the right will not got automatically to B for the entire property). In this case if the co-owner had made a will then it will go to the specific person otherwise that will be tenancy in common. This is commonly between joint family.

You do not have to be equal shareholders under this tenancy. If one party has contributed more to the property, then this can be taken into account such as a 60/40, or 70/30 share.

Joint Tenant: This is where the ownership of the same property by two or more people is held jointly and equally. (60:40 not allowed in this case only equal sharing). A joint tenancy carries with it an automatic right of survivorship by law should one tenant die. This is commonly held between spouses

Protect against the Risk of potential liability: -

If the other tenant is not willing to buy insurance, in both the above type one tenant (who has willing to take) has also right and ownership of the property. He can take the insurance on his own for his share.

The best ways is always to take joint decision and a proper communication between all the tenant as the risk is not applicable to only one tenant. the same is for all the tenant.

Apart from taking insurance the tenant can have binding agreement between all againts the risk of potential liability.