Building Owner's Liability (Werkeigentümerhaftpflicht)
Building owner's liability is the causal liability of the owner of a building or other structure for losses arising from a defective condition or inadequate maintenance of the structure.
Concept
Building owner’s liability refers to the causal liability of the owner of a building or other structure permanently affixed to the ground (e.g. a road, bridge, or retaining wall) for losses arising from a defective condition of the structure or its inadequate maintenance. Liability does not require fault on the part of the owner; what matters is solely whether the structure meets the requirements appropriate to its intended use.
Exculpatory Options
A building owner can be released from liability by proving that the defect could not have been discovered or remedied even with the care required in the circumstances (e.g. a hidden, unforeseeable construction defect), or where predominant contributory fault of the injured party or a third party breaks the chain of causation.
Relevance for Insurance Practice
Building owner’s liability is one of the central grounds for coverage under personal and building liability insurance; typical claims involve falls on poorly maintained paths, falling roof tiles, or decaying trees on the owner’s property.