Will My Homeowner’s Insurance Policy Cover This?

Are you covered for this?  Before you rent out your dock, you must confirm that you have liability insurance coverage. Homeowner’s Insurance generally does not cover home businesses.  If  you are repairing cars in your home garage and your customer is injured, your Homeowner’s insurance in not likely to cover your liability.   But most Homeowners insurance policies do cover liability from “incidental” activities that make a small amount of money.  Before you rent out your dock you must confirm whether your homeowner’s insurance policy will cover your liability.

Definition of Business activity:

The issue is whether, under the terms of your policy, this would be considered a “business activity” which is excluded from coverage.   For example, if you have a garage sale or a lemonade stand for a weekend, it probably would not be considered to be a “business.” You probably would be covered if a customer was injured on your property while buying a cup of lemonade or your old toaster.

My understanding is that most Homeowners Policies exclude coverage for “business activities” defined as an activity that generates more than $2,000 per year. This definition is included in most policies so check your Homeowner’s Insurance Policy under the definition of “Business.” Most importantly, confirm this issue with your insurance agent.

Ask your Insurance Agent!

The only way to really confirm whether your policy will cover you is to simply ask your insurance agent. Tell them that you are interested in allowing someone to use your boat dock, and you intend to charge less than $2,000 per year. Ask them to check your policy and confirm via email whether your Homeowner’s policy would cover it.  Get it in writing.

If your Homeowner’s policy does not cover this activity, then ask your agent for a policy that will cover the rental of your dock. It may be a landlord policy or business liability policy.

Other Documents to Protect You:

In addition to Insurance, be sure to use a written lease, review the boat-owner’s insurance policy, and have them sign a Release and Indemnity agreement that will protect you from liability.  Check out this blog post on these important documents:  www.docks4rent.com/2721-2/

More info:

Here is a link to an informative article posted by Allstate on the subject: https://www.allstate.com/tr/home-insurance/homeowners-or-landlord-insurance.aspx

https://www.allstate.com/tr/landlord/landlord-liability-insurance.aspx

https://www.facebook.com/Docks-4-Rent-104971197575057/?eid=ARBsMn-oDGOU3PcZuSi2pw0rho_hRrajK3djctS7WaM4BEIVAjJRzmE2pCCbky_tP_g3jtNpxeuCAFn6

 

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