If you include a golf cart with your rental...

[Villageswimmer]

You may wish to read the " ask the agent" article at the bottom of D4 in today's Daily Sun.

[Greg Nelson]

Our rental comes with a cart. I'll be alone for November without a car..YES! I'll need a cart!

[Villageswimmer]

The article addresses liability faced by rental property owners who include a cart. At this point, insurance does not cover carts used by renters.

[asianthree]

The article addresses liability faced by rental property owners who include a cart. At this point, insurance does not cover carts used by renters.

It has been that way for years. Not just renters but family and friends. But there is an insurance company looking into a policy for just that coming soon.

[gap2415]

It is safer to use a rental cart service like most of us up here decided to do. An accident claim is much more expensive. I noticed if renters get their own rental cart, they often rent them for shorter periods.

[justjim]

I will ask the question. Why would one include a cart with a rental and not have insurance?

[big guy]

Our rental no longer includes a cart. After the tenant initialed all the points on the liability waiver, she said she would sue if something happened. At that point I took the keys to the cart and drove it to our house. I went back later for the car. We had insurance with Allstate's Kevin MacDonald Agency but that wasn't enough for her. That's fine since I sleep better at night now that it is sold and not part of the equasion.

[Villageswimmer]

I will ask the question. Why would one include a cart with a rental and not have insurance?

That's the point. Your insurance covers you, the owner, and a person to whom you give permission to drive. It does NOT cover a renter. When there is an exchange of money (i.e., the rent they pay), it then becomes a "business relationship."

The article spells it out much better than I can.

I will say I asked my State Farm agent about it, and she said that in no case will they cover your renter driving your cart. If there is an accident, they are not covered and you, the owner, are liable. The renter could be as well.

This is important if you are interested in protecting your assets.

[Fraugoofy]

So why do you think so many rentals include golf carts? Do people just really not know or not care? I am guessing, but do think more private rentals include carts than not...

[Sandtrap328]

If your renter has an accident that causes injury to him or another party, your insurance company will not pay for their claims or lawsuits.

Does not matter how you phrase it, a renter is NOT covered. The insurance companies know all the weasel-wording and how to get around any check-boxes on rental agreements or "leaving the key" and the renter just found it, etc.

Does not make any sense to jeopardize your entire life savings for rental of your property plus golf cart. Let the renter rent their own cart.

[tomwed]

I've rented carts 2 times since I have been here. Both times I picked the cart up at someones house in TV and returned it a month later. What kind of insurance do they buy from All State or whoever? I know I signed something that I didn't read.

[Barefoot]

Your insurance covers you, the owner, and a person to whom you give permission to drive. It does NOT cover a renter. When there is an exchange of money (i.e., the rent they pay), it then becomes a "business relationship."


So why do you think so many rentals include golf carts? Do people just really not know or not care?

Perhaps there is a Renter's Policy available somewhere. I've never heard of one though.
For the most part, I think that people who own rental properties simply haven't considered the consequences of what could happen. It could take their life's savings and then some. Makes me shudder.

[Villageswimmer]

Perhaps there is a Renter's Policy available somewhere. I've never heard of one though.
For the most part, I think that people who own rental properties simply haven't considered the consequences of what could happen. It could take their life's savings and then some. Makes me shudder.


According to today's article, it does not exist. However, it says they (insurance industry) are working on it and hope to have it available in 2016.

For now, I can only imagine the repercussions in the event of a serious injury involving a golf cart used by a renter and its owner who thinks he's covered.

[obxgal]

Makes you wonder why when your on the "lifestyle" visit the villages still includes a golf cart.

[Sable99]

Can someone post the article? I don't have access to the Daily Sun in Michigan and would like to see it. Thanks.

[JoMar]

Makes you wonder why when your on the "lifestyle" visit the villages still includes a golf cart.

Self insured, deep pockets, subsidiary companies, not really a rental but a marketing program maybe?

[784caroline]

If the Villages rented you a home and included the golf cart it would be covered under a commercial policy.

[Erika]

It is safer to use a rental cart service like most of us up here decided to do. An accident claim is much more expensive. I noticed if renters get their own rental cart, they often rent them for shorter periods.

When we looked into renting a cart last winter through a golf cart rental service in TV, we were told by the owner that we could not get insurance. He said that it's not the same as renting a car. In order to rent the cart we had to sign a contract acknowledging that we would be liable for any damage to the cart or in the event of an accident, any and all expenses involving personal injury. We declined.

Does anyone know if bodily injury and vehicle damage insurance can in fact be purchased when renting a cart? We called our car insurance company and they do not offer that service.

[goodtimesintv]

Makes you wonder why when your on the "lifestyle" visit the villages still includes a golf cart.

When we did the lifestyle preview stay, TV had us sign a waiver form saying we assumed liability for the cart provided, for personal injury, accidental death/dismemberment etc.

The cart rental dealers do that too.

[ricthemic]

Anybody using your golf cart with your permission including friends and neighbors you, the owner, are 100% responsible in Florida.

[Villageswimmer]

Anybody using your golf cart with your permission including friends and neighbors you, the owner, are 100% responsible in Florida.

Yes, but so long as it's not a business relationship (rental), your insurance would extend to them according to our State Farm rep. To be safe, best to check your own policy.

Bottom line is that it's very risky to include a golf cart with a rental property.

[Fred R]

Anybody using your golf cart with your permission including friends and neighbors you, the owner, are 100% responsible in Florida.


Do we know that to be true, even if a friend is permitted to use it with no exchange of monies? Where is that in statute?

[bimmertl]

Do we know that to be true, even if a friend is permitted to use it with no exchange of monies? Where is that in statute?


Florida has a "dangerous instrumentality" doctrine that applies to motor vehicles which include golf carts. It makes owners liable for actions of users of the motor vehicle/golf cart.

Judge-Made Law: Florida’s "Dangerous Instrumentality" Doctrine | Abnormal Use (http://abnormaluse.com/2010/10/judge-made-law-floridas-dangerous.html)

[rustyp]

Isn't a different type of home owners insurance policy required to rent your home? If so don't these policies look more like commercial policies and thus may cover a variety of liability issues not common to residential policies?

[l2ridehd]

There is a solution. I formed an LLC and sold the golf carts to the LLC. Yes the LLC can be sued by a renter but for only the asset value of the LLC.

[Fred R]

Florida has a "dangerous instrumentality" doctrine that applies to motor vehicles which include golf carts. It makes owners liable for actions of users of the motor vehicle/golf cart.

Judge-Made Law: Florida’s "Dangerous Instrumentality" Doctrine | Abnormal Use (http://abnormaluse.com/2010/10/judge-made-law-floridas-dangerous.html)


This is helpful...Thanks

[Erika]

Did you sign the waiver? It means that if an accident between you and a pedestrian, or another driver of a golf cart, car, bicycle,etc. is deemed to be your fault, you will be financially responsible for any and all injuries and vehicular damages. I really don't understand why anyone would take that chance if they are aware of the extent of the liability to which they are agreeing in the waiver/contract. I do hope that insurance will be offered in 2016 so that we can rent a cart without those concerns during the winter.

[dbussone]

There is a solution. I formed an LLC and sold the golf carts to the LLC. Yes the LLC can be sued by a renter but for only the asset value of the LLC.


That seems like a good move but I would hate to have my LLC become the precedent case. I've had a couple of LLCs in the past. I hope you've consulted an attorney, and absolutely hope nothing but the best for you.

[Shadow8IA]

I spent months researching this last year. My home insurance in Iowa would cover me in a gated community and on any golf course. But the gated community was only good in the one area we lived in. Once you go out of any gates your no longer covered. There's a very fine line on what they covered and it would be up to the adjuster to determine after a claim. The Villages is a community with gates NOT a gated community. There was something about if it was all one association it would be covered. I contacted someone at The district office at The Villages who felt it would fall under that but I was glad we had no problems in the 90 days we rented the cart.


When we rented the cart we had to sign a waiver saying we were responsible. He said he didn't care abuut the cart just couldn't be held responsible for liability.

Now we bought a house and our cart insurance says we can let friends and family drive it but we can't rent it. You also can't rent a house and lend the cart out free.

[l2ridehd]

That seems like a good move but I would hate to have my LLC become the precedent case. I've had a couple of LLCs in the past. I hope you've consulted an attorney, and absolutely hope nothing but the best for you.

I did. McLin Burnsed has an attorney that specializes in corporations and I had him open, set up and handle all annual reporting for the Florida LLC. The LLC owns golf carts for my two rentals and my own two personal golf carts. And tenants sign a separate golf cart lease they made for me from the LLC. So yes it is possible if the LLC is sued I could lose all 4 golf carts plus the liability limit the LLC is insured for, but no more. It manages the risk.

[Harleyman]

I realize in Canada the our laws differ I bit but not much. If your LLC was sued in Canada, the officers, being yourself, would be added to the suit. If the LLC did not have enough assets to cover the suit, the officers would pick up the rest. Have you checked that out.

[dbussone]

I did. McLin Burnsed has an attorney that specializes in corporations and I had him open, set up and handle all annual reporting for the Florida LLC. The LLC owns golf carts for my two rentals and my own two personal golf carts. And tenants sign a separate golf cart lease they made for me from the LLC. So yes it is possible if the LLC is sued I could lose all 4 golf carts plus the liability limit the LLC is insured for, but no more. It manages the risk.


Well done. A lot of folks use an online service to set up an LLC without an attorney involved. You did it the correct way and used a FL lawyer.

[Packer Fan]

never mind.

[tomwed]

If I use my own auto insurance on a rental car, I'm covered.
If I sign a waiver on a golf cart, that cannot exceed 20 mph and cannot go on the road, is it considered a motor vehicle so that my auto insurance covers me?
Suppose I rent an LSV , sign the waiver, that can go over 20 mph, has all the safety features and can go on the road, isn't that considered a motor vehicle? So I'm covered with my auto insurance.

I will take it up with my insurance company. So no one need fear of saying the wrong thing.

I was thinking about renting out the house and including a cart to sweeten the deal. It's all hypothetical at this point.

[GatorFan]

I suggest you talk to the agent who represents the companies. Unless an agent is actually licensed to represent the company they have no idea how the company will respond.

[Shadow8IA]

If I use my own auto insurance on a rental car, I'm covered.
If I sign a waiver on a golf cart, that cannot exceed 20 mph and cannot go on the road, is it considered a motor vehicle so that my auto insurance covers me?
Suppose I rent an LSV , sign the waiver, that can go over 20 mph, has all the safety features and can go on the road, isn't that considered a motor vehicle? So I'm covered with my auto insurance.

I will take it up with my insurance company. So no one need fear of saying the wrong thing.

I was thinking about renting out the house and including a cart to sweeten the deal. It's all hypothetical at this point.

Your auto coverage won't cover it but your home owners might. Ours was good in a gated community (not a community with gates) but not all of The Villages just the area we live in without leaving the gates. Ours also covered any golf course we were on. But not getting there.

[Kelsie52]

If I use my own auto insurance on a rental car, I'm covered.
If I sign a waiver on a golf cart, that cannot exceed 20 mph and cannot go on the road, is it considered a motor vehicle so that my auto insurance covers me?
Suppose I rent an LSV , sign the waiver, that can go over 20 mph, has all the safety features and can go on the road, isn't that considered a motor vehicle? So I'm covered with my auto insurance.

I will take it up with my insurance company. So no one need fear of saying the wrong thing.

I was thinking about renting out the house and including a cart to sweeten the deal. It's all hypothetical at this point.


You will get some people to tell you THEIR agent said this or that -in my opinion just to get the sale----I have checked numerous companies over the last 3 years that I have been renting out a Villa No one will give it in writing

One agent told us just say they are friends and you LENT it to them.. In other words. LIE ----

Reduce the price a little on the rental and give the guests a list of rental companies

INHO waivers are useless---- The waiver will not make you untouchable in a court case



It has worked for us ---

Good luck

[Arubagirl33]

I'm still a NY resident & would like to set up an LLC for a Rental in the TV. I can use an Attorney in Florida correct? It doesn't have to be set up in the State I reside??

[big guy]

Isn't a different type of home owners insurance policy required to rent your home? If so don't these policies look more like commercial policies and thus may cover a variety of liability issues not common to residential policies?

The insurance policy on our rental looks just like the policy on our home. It's the same company but it's almost $400 more per year than on our home although the rental is smaller.

[Villageswimmer]

We have friends who don't even bother to let the insurance company know they are renting their property, much less worry about the additional liability of including the golf cart. Insurance companies aren't your friends when there's any way out of paying a claim.

Best to present your situation honestly with your insurance people to be sure your assets are protected.