Landlord Liability and watercraft

[pineview]

What is the name of your state (only U.S. law)? Michigan
I have a vacation home which I rent out a couple of weeks each year to assist with expenses. The home has a homeowners insurance policy with a Landlord Liability endorsement. Does the Landlord Liability endorsement cover the watercraft that are provided with the rental (i.e. rowboat, kayaks and paddleboards)?

 

[FlyingRon]

What is the name of your state (only U.S. law)? Michigan
I have a vacation home which I rent out a couple of weeks each year to assist with expenses. The home has a homeowners insurance policy with a Landlord Liability endorsement. Does the Landlord Liability endorsement cover the watercraft that are provided with the rental (i.e. rowboat, kayaks and paddleboards)?

How would we know? We can't read the policy and endorsement. Why don't you call the insurance company and ask?

I can tell you that most homeowner's policies do not cover watercraft PERIOD.

 

[pineview]

How would we know? We can't read the policy and endorsement. Why don't you call the insurance company and ask?

I can tell you that most homeowner's policies do not cover watercraft PERIOD.

The endorsement appears to be a standard ACORD form, which means it would be the same across all company policies. And is a bit vague on what constitutes a rental watercraft. I have conflicting answers from two different insurance agents.

 

[quincy]

The endorsement appears to be a standard ACORD form, which means it would be the same across all company policys. And is a bit vague on what constitutes a rental watercraft. I have conflicting answers from two different insurance agents.

Ask your insurance agent about commercial liability coverage.

 

[NIV]

You are the one to limit your risk. What risk are you trying to limit?

To me, what quincy wrote is probably the way to go to resolve the most risk. If some fool goes out and kills himself on a "watercraft", they will come looking for you. The most liability will come if it is found you are renting a dwelling unit AND renting out watercraft. You will argue you ONLY rented out a room and allowed the tenant to use things around the unit--like watercraft. They will argue the reason they rented the room was because of the nearby water and the watercraft available was the key to renting from you.

One requires a landlord policy and the other may require a commercial policy.

 

[xylene]

Your protection from risk shpould be in the form of suitably high rent.

 

[quincy]

Your protection from risk shpould be in the form of suitably high rent.

Rent is no protection from a lawsuit, regardless of amount.

 

[FlyingRon]

Rent is no protection from a lawsuit, regardless of amount.

Well if it causes the property not to be rented ...

 

[quincy]

Well if it causes the property not to be rented ...

Haha. Good point.

 

[pineview]

You are the one to limit your risk. What risk are you trying to limit?

To me, what quincy wrote is probably the way to go to resolve the most risk. If some fool goes out and kills himself on a "watercraft", they will come looking for you. The most liability will come if it is found you are renting a dwelling unit AND renting out watercraft. You will argue you ONLY rented out a room and allowed the tenant to use things around the unit--like watercraft. They will argue the reason they rented the room was because of the nearby water and the watercraft available was the key to renting from you.

One requires a landlord policy and the other may require a commercial policy.

I'm inclined to agree! I believe I'm fine with a Landlord Liability endorsement/Landlord policy until "watercraft" are included in the equation. Then it should be covered by a commercial policy, even though I'm not running a "watercraft" livery.

My neighbors, who also rent out a week here or there, INSIST their agents say their "watercraft" are covered. I suspect they are not communicating properly with their agents. I posed a number of questions to my own agent, who says my "watercraft" are covered. I'm still not convinced she understands what I'm trying to get at. And, BTW, my insurance carrier's customer service line seems to be centered around billing issues, not answering questions. They want their money!!

And that's why I'm here. To see if I could get some clarity.

Thanks to all for the advice.

Worse comes to worse, I'll take mine and lock them in the barn where they are unable to get to them.

 

[adjusterjack]

I can tell you that most homeowner's policies do not cover watercraft PERIOD.

No.

Homeowners insurance does have some liability coverage for the homeowners use of SOME types of watercraft.

What is the name of your state (only U.S. law)? Michigan
I have a vacation home which I rent out a couple of weeks each year to assist with expenses. The home has a homeowners insurance policy with a Landlord Liability endorsement. Does the Landlord Liability endorsement cover the watercraft that are provided with the rental (i.e. rowboat, kayaks and paddleboards)?

Confirm this by reading your policy.

The standard Homeowners Policy HO-3 Liability Section excludes watercraft "rented to others."

The endorsement appears to be a standard ACORD form, which means it would be the same across all company policies. And is a bit vague on what constitutes a rental watercraft. I have conflicting answers from two different insurance agents.

My neighbors, who also rent out a week here or there, INSIST their agents say their "watercraft" are covered. I suspect they are not communicating properly with their agents. I posed a number of questions to my own agent, who says my "watercraft" are covered. I'm still not convinced she understands what I'm trying to get at.

That's because insurance agents are often a wealth of misinformation about insurance policy provisions.

You need the opinion of a claim rep (me), one who actually has to read and understand the coverage before paying or denying a claim.

I would have to read the Landlord Liability endorsement to make any further comments.

And, BTW, my insurance carrier's customer service line seems to be centered around billing issues, not answering questions.

Customer service has nothing to do with claims. Policyholders rarely have access to claim reps unless they are involved in an ongoing claim.

Worse comes to worse, I'll take mine and lock them in the barn where they are unable to get to them.

Good idea.

Also make is clear in your lease or written rental agreement that use of your watercraft (and the barn) is prohibited.

 

[quincy]

I'm inclined to agree! I believe I'm fine with a Landlord Liability endorsement/Landlord policy until "watercraft" are included in the equation. Then it should be covered by a commercial policy, even though I'm not running a "watercraft" livery.

My neighbors, who also rent out a week here or there, INSIST their agents say their "watercraft" are covered. I suspect they are not communicating properly with their agents. I posed a number of questions to my own agent, who says my "watercraft" are covered. I'm still not convinced she understands what I'm trying to get at. And, BTW, my insurance carrier's customer service line seems to be centered around billing issues, not answering questions. They want their money!!

And that's why I'm here. To see if I could get some clarity.

Thanks to all for the advice.

Worse comes to worse, I'll take mine and lock them in the barn where they are unable to get to them.

You can have your lease agreements include indemnity clauses (release of liability clauses). And you can require all renters to have proof of personal insurance.

But locking all watercraft in the barn is another option.