With an insurance managing the risk is possible
1. How is the concept of risk defined?
Let's look at the definitions of "risk" in English, Spanish and Catalan :
Oxford Dictionary definition: "The possibility that something unpleasant or unwelcome will happen".
Real Academia Española (RAE) definition: "contingència o proximidad de un daño".
Diccionari de l'Institut d'Estudis Catalans (DIEC) definition: "Contingència a la qual està exposat algú o alguna cosa, perill incert".
The DIEC's definition is the most complete because it explicitly states that the risk notion is not valid if it does not threaten people or property: it is more subtle than obvious.
2. Answering to risk in real world
COVID-19 is a global threat. This case enriches the risk notion from three new angles with respect to the definitions of point one:
- Knowledge variable: probability and statistics allow quantification and prediction.
- Time variable: the harmful situation can be the result of a cause and disappear as soon as it no longer exists or consolidate (it is very likely that COVID is of the latter type).
- Collective action variable: in the face of a danger, it is necessary to reach a consensus among the potential affected parties. This is valid when we are talking about COVID-19 or a community of owners.
3. Insurance: a human creation to protect against what is future and unforeseen.
The vast majority of risks are unpredictable (although not all: the building that collapsed in Miami last June threatened to fall if the appropriate works were not carried out) and, by definition, future (something past is already a consummated misfortune).
Modern insurance were born as a result of the " London's Great Fire", which took place in 1666. The flames consumed 13,200 houses, 99 churches and the Cathedral of Saint Paul. This huge devastation was the turning point towards insurance design by Nicholas Barbon. This mechanism pays a certain risk thank to the contributions of whoever subscribes to a certain price. Today insurance is in public policy through pension plans by means of contributions to Social Security and in private practice.
Finques Feliu recommends to have one at home and to hire another for the of Owners' Community.
Any insurance covers at least five risks:
- Against fires: as we have just explained, they were the first to appear. In Barcelona this type of insurance was born in the year 1835 in the context of the bullangues and the bombardment of General Espartero. Here we give 22 advices in case of fire.
- Against atmospheric phenomena: against big floods follow the protocol: "avoid, resist, tolerate and withdraw".
- Against burglaries: a burglary can be prevented with active or passive security measures. Unfortunately, neither the crime nor the damage that may occur can always be avoided.
- Against leaks and filtrations: they are the cause of multiple deficiencies. To avoid them we offer you a service dedicated to preventive maintenance.
- To cover the cost of civil liability: we charge the community of owners for the costs of any accident that may occur in the whole extension of their common areas.
4. What is civil liability and from which legal sources does it emanate?
Of the five listed risks, there is one that we have never dealt with in the blog: that of not being able to face civil liability. This legal concept refers to: "the obligation of any natural or legal person (company) to pay for any damage or harm that may be caused to personal integrity or to other people's property". Collecting this risk usually goes hand in hand with the payment of the costs of the legal defense of the community of owners.
According to article 1089 of the Spanish Civil Code the requirement of legal liability arises from:
a) The Law
b) The contracts and quasi-contracts
c) Acts and omissions of an illicit nature that imply a fault or negligence that can be reliably demonstrated.
Despite the legal explanation we have given, we are aware that the notion of civil liability can be very abstract. Don't worry, we will give two common examples:
- Imagine that, at home, an owner suffers an accidental flood. Then, this causes leaks that spill the paint of the person who lives underneath. At this moment, the protection provided by the civil liability insurance covers the cost of the damage caused.
- Imagine that, in the Community of Owners, a third party accidentally causes damage to the common areas of the building. As in the previous case, having contracted the policy would have been providential.
To hire an insurance is only compulsory in Madrid and Valencia regions.
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