Day Care

[vicky26]

What is the name of your state? From ca. Me and my husband rent a house from his grandparents and we asked if we could run a day care from it. We would get liablity insurance and rents insurance and we had forms for the parents to sign that stated we did not own the house or the land and that if somthing happend that they could not go after the owners, Well my mother in law told them that they could loss everything and then they told me that their homeowner insurance would dropp them if we did it. Can they do that. And could they still be sued after all that we did.

 

[divgradcurl]

What is the name of your state? From ca. Me and my husband rent a house from his grandparents and we asked if we could run a day care from it. We would get liablity insurance and rents insurance and we had forms for the parents to sign that stated we did not own the house or the land and that if somthing happend that they could not go after the owners, Well my mother in law told them that they could loss everything and then they told me that their homeowner insurance would dropp them if we did it. Can they do that. And could they still be sued after all that we did.

Yes and yes. Many homeowner's policies will not cover a home-based business. And in any lawsuit, you sue anyone who might potentially be liable for damages, so yeah, the homeowners would be likely to be dragged into any lawsuit that got filed. Now, whether or not they would be LIABLE is another question altogether, but they would certainly be named in any suit, and would have to take the time and expense of defending themselves, even if they won -- and they MIGHT be on the hook for liability anyway, depending on the specific complaint.

Maybe you could investigate other avenues of insurance that might placate your parents.

 

[moburkes]

And owner needs to TELL the insurance company UP FRONT that they no longer live in the house, or the insurance company will not even defend them in court against the charges. Owner needs to purchase a commercial insurance policy with high limits, and explain the business to the carrier.

You can't tell people who they can and cannot sue. I wouldn't use your day care.