Where there’s fire, there’s smoke

Smoke fire large

Source: stuff.co.nz

When an oversight leads to much larger consequences, the role of insurance can be thrown into stark relief.

The media are reporting on a case where a couple face a bill in excess of $1m, after ashes they discarded on their property resulted in a fire that caused considerable damage to adjacent land.  The couple have been successfully sued for the cost of damage by Nelson Forests, the Fire Service Commission and a Rural Fire Committee. With no liability insurance in place, the couple face the loss of their personal assets to meet this debt. Check out the stuff.co.nz article: “Couple face 1m bill for blaze”.

The story has led to considerable comment on the Stuff website, some of it highlighting the lack of understanding around the funding for the fire service, but much of it reinforcing the importance of having in place insurance for personal liability.

We’d be interested in your views on both matters.

We recently provided some food for thought on a similar insurance liability story covered by the New Zealand Herald: “Insurance you didn’t know you needed”.

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