Is renting a golf cart a big liability to owner

[John Reis]

We just started renting our Villa and I have a question concerning whether to include a golf cart as part of the rental. I don't have a cart and would need to buy one, used probably. Would also take out separate cart insurance policy. However my concern is that, since I am new to this, I really don't know what the liability risks are with providing a cart to tenants.
Looking for advice from other renters on the pros and cons of providing a golf cart. Do you feel that going through the effort and expanse of buying a cart is worth it due to increased rental activity.

Thanks

[kfierle]

I rented my place for about 5 years without a cart and had no problems finding renters. I always provided my tenants with a list of where they could rent carts. At the time, I could not justify the expense of purchasing a cart for renters when it was just as easy for them to rent a cart. Yes, I had huge concerns about liability.

[Rickg]

We bought last year and decided to rent it out for two months. We had it rented within the first week of listing it WITHOUT a golf cart. I felt there was a huge liability and had heard the same from others. I will have my cart picked up and stored for the two months that the house is rented. I provided the tenants with a list of local businesses that rent GC's and advised them to call early.

[Kelsie52]

I rent my Villa without a cart --have had no problems renting it at all.

I feel there is a great liability issue for me as a homeowner if I provide a cart . If someone is in an accident you will be pulled into the case.

You can not purchase a policy for a cart that is provided with your home as a rental.

You will see some say that certain companies will write the policy --but you must say that you are letting them use the cart and it is not part of the rental

That is a little to deceptive for me.

Good Luck

[jnieman]

I think you'll find that you need a separate insurance policy on the cart to rent it out. Many homeowner's policies only cover the cart while it is being driven on the golf course. It may be difficult to find an insurance agent to write such a policy. If you do searches on this forum, this topic has been discussed many times.

[ijusluvit]

I think you'll find that you need a separate insurance policy on the cart to rent it out. Many homeowner's policies only cover the cart while it is being driven on the golf course. It may be difficult to find an insurance agent to write such a policy. If you do searches on this forum, this topic has been discussed many times.

At the present time there is no such thing as a cart insurance policy which covers either the owner or the renter. In other words, all of the liability for cart use falls on the owner of the cart if there is a problem.

However, there is an answer for those who rent their homes and wish to provide cart use for their guests. A cart policy from Allstate, for less than $70 annually WILL cover the owner and the renter for all liability and property damage under these conditions: IF it is a private home rented by the owner (not a golf cart business with more than one cart), and IF there is no separate fee charged for the cart. In this case, the owner is allowing a guest to use his cart, just like he would do if a relative or friend was visiting, and therefore everyone is covered. Owners who wish to derive some income from cart use must add these costs to the home rental fee.

This has all been discussed in previous threads. By this time there may be more than one company offering similar coverage, but Allstate certainly still does.

[jnieman]

As a previous poster mentioned Allstate may offer some solution to letting your renter use your golf cart. To be sure call Mike Fisette at Allstate at 753-4340. Mike has all of the answers.

[John Reis]

Thank you all for the good information. I am leaning towards not providing a cart since I too was able to rent my villa within a week for the high season. However I did come across a good amount renters that did not rent due to no golf cart. So I was starting to feel the pressure to get one. My wife is now VERY happy.....

Thanks for providing a straight forward explanation of the Allstate insurance situation, that was very helpful.
John

[caseycasebeer]

We have been renting our villa for the past year (...very successfully). We had an electric golf cart and initially planned to include it in the rent. The more we thought/read/studied the liability issues involved we decided not to include the cart. Many folks are exclusively in the cart rental business and cover the various concerns well.

[mulligan]

And the interesting aspect of the rental cart business is that they are un-insured.

[ijusluvit]

And the interesting aspect of the rental cart business is that they are un-insured.

Not only are cart rental companies uninsured, but folks who rent carts from anyone are uninsured as well. There is a common belief that a person's auto, homeowner's or certainly their umbrella liability coverage will protect them if they have a problem in a rented golf cart. This is simply not true. The only circumstance under which you are protected is if you have been allowed to use another person's insured golf cart and you are not paying specifically for that privilege.

[Rosalie]

I didn't realize until recently that the golf carts I have rented from various rental companies probably were not insured!! We'll be down to The Villages soon and will need to rent a golf cart----any suggestions out there on what to do? I could call my local car insurance company and ask if they will insure it in Florida or I could just hope for the best and drive carefully!

I'm wondering if The Villages Golf Carts (as in the one on Canal St.) are insured? Does anyone know? Guess I could call and ask them!

Any info will be apreciated. Thank you.

[ouatiny]

When you are in court over the house the rental agreement the recommendation of a cart rental or what ever just tell the judge to check with TOTV as he can get all his answers right here.. AND they lawyer you will be paying to represent you will cost so much more than the lawyer you could ask now! about tips and tricks for renting your real estate your liabilities as a landlord etc etc. just a thought

[Barefoot]

..... or I could just hope for the best and drive carefully!

Please Rosalie, don't even consider driving a golf cart without proper insurance. If you are in an accident, it could cost you a fortune. Golf cart insurance is not expensive, but very necessary.

[Indydealmaker]

There is no way that legit golf cart rental companies are running bare without liability coverage.

That being said, the renters are dependent upon their homeowners for liability coverage.

I can't believe that the rental firms would not offer policies similar to car rental companies.

[Skybo]

There is no way that legit golf cart rental companies are running bare without liability coverage.

That being said, the renters are dependent upon their homeowners for liability coverage.

I can't believe that the rental firms would not offer policies similar to car rental companies.

Carts rented from The Village Golf Car Stores are insured for theft only. Renters are on their own for covering liability. That is the case with at least one other cart rental company I called last year, but I can't recall which company it was. I just called TV Golf Car Store to ensure that my memory was correct, and they confirmed...their carts only come with theft insurance.

[Indydealmaker]

Carts rented from The Village Golf Car Stores are insured for theft only. Renters are on their own for covering liability. That is the case with at least one other cart rental company I called last year, but I can't recall which company it was. I just called TV Golf Car Store to ensure that my memory was correct, and they confirmed...their carts only come with theft insurance.

The theft coverage lets the renter off of the hook in case of theft, but you can still be sure that the rental car company is insured against liability. One accident could wipe out the company entirely.

[Skybo]

The theft coverage lets the renter off of the hook in case of theft, but you can still be sure that the rental car company is insured against liability. One accident could wipe out the company entirely.

I'm sure you're correct Steve about the companies protecting themselves, but they don't have any coverage which protects the renters/drivers of the carts.

[Indydealmaker]

I'm sure you're correct Steve about the companies protecting themselves, but they don't have any coverage which protects the renters/drivers of the carts.

Which they easily could, even if they had to charge a fee. Lost opportunity for profit.

[ijusluvit]

There is no way that legit golf cart rental companies are running bare without liability coverage.

That being said, the renters are dependent upon their homeowners for liability coverage.

I can't believe that the rental firms would not offer policies similar to car rental companies.

There are some threads about this subject here written last Spring, when all insurance companies operating in our area announced that they would no longer insure rental carts for liability or property damage. This included carts rented by individuals and companies, including The Villages. As far as I know, this is still the case, except for Allstate, which worked out a deal with their home office to insure single cart owners who rent their homes to allow guests to use their carts, under specific conditions. Otherwise, no individual or company renting carts, including The Villages, is itself protected against liability claims, nor are folks who rent their carts. Maybe TV is not too concerned about this because they are big enough to self insure, but the smaller rental companies are fully exposed, as are their customers who rent carts. The reason why folks who rent carts are exposed is that all insurance policies they carry, including umbrella liability, will not kick in until a basic insurance policy is exhausted. And no basic policy exists.

I would love to be shown I am now wrong about this, but I think anyone who calls any cart rental company and asks pointedly about insurance, will discover insurance is not available.

[bimmertl]

There is no way that legit golf cart rental companies are running bare without liability coverage.

That being said, the renters are dependent upon their homeowners for liability coverage.

I can't believe that the rental firms would not offer policies similar to car rental companies.

Businesses engaged in renting motor vehicles are not liable for negligent acts of the renter so there is no need for them to get liability policies. The last paragraph in this link summarizes it nicely.

You HO policy will not provide coverage for you on a rented golf cart. However, if you owned and insured your own golf cart, you could get "non owned" liability coverage just like you would if your auto policy provided coverage to you on a rented car.


Florida Supreme Court Rules No Vicarious Liability for Businesses that Rent or Lease Vehicles | Rumberger Kirk & Caldwell - Florida Law Firm (http://www.rumberger.com/?t=40&an=18564&format=xml&p=4946)

[Indydealmaker]

There are some threads about this subject here written last Spring, when all insurance companies operating in our area announced that they would no longer insure rental carts for liability or property damage. This included carts rented by individuals and companies, including The Villages. As far as I know, this is still the case, except for Allstate, which worked out a deal with their home office to insure single cart owners who rent their homes to allow guests to use their carts, under specific conditions. Otherwise, no individual or company renting carts, including The Villages, is itself protected against liability claims, nor are folks who rent their carts. Maybe TV is not too concerned about this because they are big enough to self insure, but the smaller rental companies are fully exposed, as are their customers who rent carts. The reason why folks who rent carts are exposed is that all insurance policies they carry, including umbrella liability, will not kick in until a basic insurance policy is exhausted. And no basic policy exists.

I would love to be shown I am now wrong about this, but I think anyone who calls any cart rental company and asks pointedly about insurance, will discover insurance is not available.

I would hope you were wrong also. Otherwise it means that some very foolish businessmen operate in this area. Without such liability coverage to protect them, these businesses cannot even borrow money from a bank to buy new equipment. The only protection from personal financial destruction is their corporation and piercing the corporate shell is pretty straight forward.

[bimmertl]

I would hope you were wrong also. Otherwise it means that some very foolish businessmen operate in this area. Without such liability coverage to protect them, these businesses cannot even borrow money from a bank to buy new equipment. The only protection from personal financial destruction is their corporation and piercing the corporate shell is pretty straight forward.

I guess you missed this.



Florida Supreme Court Rules No Vicarious Liability for Businesses that Rent or Lease Vehicles | Rumberger Kirk & Caldwell - Florida Law Firm (http://www.rumberger.com/?t=40&an=18564&format=xml&p=4946)

[Indydealmaker]

I guess you missed this.



Florida Supreme Court Rules No Vicarious Liability for Businesses that Rent or Lease Vehicles | Rumberger Kirk & Caldwell - Florida Law Firm (http://www.rumberger.com/?t=40&an=18564&format=xml&p=4946)

Yep missed that. I can't believe that the Supreme Court didn't alert me.

One problem though is the lawsuits often involve claims of negligence on the part of the vehicle owner with regard to maintenance, defects, etc. It can cost thousands just defend your position regardless to the validity of the claims.

[NIPAS K-9]

Yes big............. Liability, i give them phone numbers to cart rental places and they do their own........ No liability for me, i'm out of any accidents, god forbid they run over a pedestrian after a few drinks over dinner. I don't want to lose what i have worked all my life for over a golf cart. I consulted my attorney before making a decision, i suggest you do to. And you will see.....

[NIPAS K-9]

yep missed that. I can't believe that the supreme court didn't alert me.

One problem though is the lawsuits often involve claims of negligence on the part of the vehicle owner with regard to maintenance, defects, etc. It can cost thousands just defend your position regardless to the validity of the claims.
that was some solid good advice you gave. Thanks for the post.

[ilovetv]

Yes big............. Liability, i give them phone numbers to cart rental places and they do their own........ No liability for me, i'm out of any accidents, god forbid they run over a pedestrian after a few drinks over dinner. I don't want to lose what i have worked all my life for over a golf cart. I consulted my attorney before making a decision, i suggest you do to. And you will see.....

Or God forbid, the renters let their visiting grandchildren age 13 drive the landlord's cart with no limiter on the speed, no seat belts, and they're flying down the street in diamond lanes at 25+ mph. I've seen it and it's insane.

[ijusluvit]

I was not aware that Florida law now protects companies from liability claims for damage. Glad small rental companies don't have to face that.

However, the renter is the one who is still exposed to liability claims if they have a problem with a rented cart.

[ilovetv]

Not so sure this supreme court decision applies to unlicensed golf carts that are not "street legal" with licensing, registration, insurance etc.

They refer to Daimler Chrysler and Enterprise Rental Car companies. The golf carts we use here in the streets are not treated like cars/trucks etc leased out by a company like Enterprise or a Chrysler dealer.......

"A recent decision of the Florida Supreme Court shields owners of vehicles leased for one year or more from liability for harm that results from the lease of the vehicles. Rosado v. DaimlerChrysler, ___ So. 3d ___, 2013 WL 1338047 (Fla. Apr. 4, 2013). In Rosado, the Florida Supreme Court ruled that the federal Graves Amendment, which insulates businesses that rent or lease vehicles from vicarious liability for harm caused by their drivers, preempts Florida state law. By a 5-2 decision, the Rosado Court held “the Graves Amendment preempts liability under Florida Statutes Section 324.021(9)(b)(1).” Rosado, 2013 WL 1338047, at
*1. - See more at: Florida Supreme Court Rules No Vicarious Liability for Businesses that Rent or Lease Vehicles | Rumberger Kirk & Caldwell - Florida Law Firm (http://www.rumberger.com/?t=40&an=18564&format=xml&p=4946#sthash.6ErMUPJO.dpuf)

Consult an attorney of your own to be safe!!

[bimmertl]

Not so sure this supreme court decision applies to unlicensed golf carts that are not "street legal" with licensing, registration, insurance etc.

They refer to Daimler Chrysler and Enterprise Rental Car companies. The golf carts we use here in the streets are not treated like cars/trucks etc leased out by a company like Enterprise or a Chrysler dealer.......

"A recent decision of the Florida Supreme Court shields owners of vehicles leased for one year or more from liability for harm that results from the lease of the vehicles. Rosado v. DaimlerChrysler, ___ So. 3d ___, 2013 WL 1338047 (Fla. Apr. 4, 2013). In Rosado, the Florida Supreme Court ruled that the federal Graves Amendment, which insulates businesses that rent or lease vehicles from vicarious liability for harm caused by their drivers, preempts Florida state law. By a 5-2 decision, the Rosado Court held “the Graves Amendment preempts liability under Florida Statutes Section 324.021(9)(b)(1).” Rosado, 2013 WL 1338047, at
*1. - See more at: Florida Supreme Court Rules No Vicarious Liability for Businesses that Rent or Lease Vehicles | Rumberger Kirk & Caldwell - Florida Law Firm (http://www.rumberger.com/?t=40&an=18564&format=xml&p=4946#sthash.6ErMUPJO.dpuf)

Consult an attorney of your own to be safe!!

The decision applies to businesses that "rent or lease motor vehicles". That's extremely broad. A golf cart is a motor vehicle.

Florida's dangerous instrumentality doctrine applies to golf carts which would have created the vicarious liability to the owner of the rental agency. So this strikes that down. Their is no other owners liability statute or case law in Florida creating liability for the owner.

[John Reis]

These posts paint a scary picture, I had no idea what can of worms I was opening up by actually thinking of including a cart with rental. Great service and knowledge provided by all who commented. Many Thanks
:BigApplause:

[ilovetv]

The decision applies to businesses that "rent or lease motor vehicles". That's extremely broad. A golf cart is a motor vehicle.

Florida's dangerous instrumentality doctrine applies to golf carts which would have created the vicarious liability to the owner of the rental agency. So this strikes that down. Their is no other owners liability statute or case law in Florida creating liability for the owner.

Sounds good. But what about the vehicle "leased for one year" part of the supreme court decision?

Most people who rent golf carts or a rental home here aren't going to lease for one year, but rather would rent on a seasonal basis, for 2-3-4 months or maybe a few weeks.

If a person needed a cart for at least one year, it would make no sense to rent one for that long.....the cost of renting one is high and a person staying here for a year or more would buy one.

[ilvgolf]

Well, my sister rented her house for several years for four months out of the year and had a golf cart with it. She insured it with Allstate and her policy stated it was to be used by renters. No problems there.

I rent my Villa without a cart --have had no problems renting it at all.

I feel there is a great liability issue for me as a homeowner if I provide a cart . If someone is in an accident you will be pulled into the case.

You can not purchase a policy for a cart that is provided with your home as a rental.

You will see some say that certain companies will write the policy --but you must say that you are letting them use the cart and it is not part of the rental

That is a little to deceptive for me.

Good Luck

[TrudyM]

These posts paint a scary picture, I had no idea what can of worms I was opening up by actually thinking of including a cart with rental. Great service and knowledge provided by all who commented. Many Thanks
:BigApplause:

When checking comps to set your rental price I would advise checking if they include a cart or not. High season people can get whatever but when I am comparing rentals (and there are over 400 on my spread sheet) I add $350 to the cost of a rental not including a cart so I am comparing apples to apples, I would think others would too.

My insurance company (Gieco) said that I have liability coverage under my umbrella but not collision. So If I hit a person their expenses are covered. But in no case was injury to myself or the cart I am driving covered. There was a travel policy available but they wanted $30 a day for coverage so way too expensive.

[maddie101]

Ours rented long term without a cart, too. In fact we had several long term offers knowing a cart was not included. We had no intentions of including a cart no matter what.

[maybe]

The decision applies to businesses that "rent or lease motor vehicles". That's extremely broad. A golf cart is a motor vehicle.

Florida's dangerous instrumentality doctrine applies to golf carts which would have created the vicarious liability to the owner of the rental agency. So this strikes that down. Their is no other owners liability statute or case law in Florida creating liability for the owner.

Rental businesses are only protected, by that cited case and those statutes, from incidents in which only the driver of the cart is alleged to have been at fault. It does not protect from a claim that the cart had been improperly maintained.When the driver says that he braked but nothing happened, guess who gets added to the suit?!