Any new info on golf cart insurance with renters?
 

A year ago there was a thread saying that in 2016 there might be insurance available for people who rent out their house with a golf cart. Does anyone know of an insurance company that sells insurance for this purpose? As always thanks to the wealth of knowledge on TOTV.

Rental cart insurance
 

There was an insert in the paper this morning saying they're still working on it and to please be patient.

I was asked to take part in a survey well over a year ago about this issue and nothings has been heard from since then. How long would it take. Jeez.

Our insurance company, State Farm, states that they will not cover renters under any circumstances. This exposes landlords to serious liability. Check with your own insurance carrier and if they say renters are covered, get it in writing.

I would think the first company that comes up with a new policy many will use that insurance for their golf carts. It's not just renters it's when your parents, your siblings, your children visit and drive your golf cart.

My wife and I are winter renters, and our landlord does not supply insurance cover on golf cart.
Our medical and public liability insurance is covered by our credit card supplier, and it is a very good deal regarding the medical cover for two people.
I checked with them about golf cart cover after reading the article about cart insurance on TOTV.
They agreed to cover me regarding public liability, providing we did not use golf cart on a public road, but we were covered on cart paths and golf courses.
We can't leave the house, without going on a public road?????

We just use the car.(rental, no cart cover) Gas is cheap.

Form an LLC and transfer ownership of your cart to the LLC. Get a high dollar umbrella and you should be OK as a landlord.

Definitely speak BOTH to an attorney AND your insurance company before doing that. Insurance companies have seen all types of tricks. They have more lawyers than you can imagine!

I have insurance through the Villages insurance and the policy covers anyone that has my permission when they use the cart. We have friends and family visiting plus neighbors use our cart when they need a spare. We live here, don't rent so it's a bit off subject....bottom line is make sure you have a reputable insurance company and talk to them directly.

Mclin and Burnsid helped us create our LLC. Couldn't have been happier!

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How do you show ownership of a cart in an LLC when no title is involved?

Use your cart serial number and register it under your company name.

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The umbrella is purely an excess policy so it only apples after the primary policy on the cart is "used up". It doesn't drop down to first dollar coverage.

So if your primary cart policy doesn't apply, umbrella won't do you any good.

You are confusing cart ownership with cart insurance coverage. The standard exclusions still apply regardless of how the cart is titled or owned. If it's owned by a corporation and rented to others there still isn't any coverage. Creative ownership doesn't change the basic insurance policy conditions.

Perhaps someone with insurance or legal knowledge could enlighten us on this question.
What if a renter was to provide a golf cart?..Providing occupant has to secure and show proof of their own coverage.
Guess what I'm saying would insurance companies write a separate policy in the occupant's name ?

The renter is not covered. You are correct. But by forming an LLC the owner of the cart can only be sued for the amount of the business and not his life savings. No matter what renters are not covered. If you rent a golf cart from The Villages, I don't think you have insurance, either...

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Remember that Morgan and Morgan, Mark Nation, and 411-Pain did not get rich by not knowing how to sue successfully over people who try amatuer insurance dodges.

However, if you think it covers you, just do it.

Best idea, imo, don't rent your golf cart!!

Maybe, but how do you define "the business?" Since the business relationship revolves around renting the house, isn't that the business? Seems to me the golf cart is ancillary to the house. Could you lose the house?

If someone were seriously injured/killed, the lawyers look to anyone, including entities, to sue. The deeper the pockets, the better.

That said, I'm sure your attorney knows what he's talking about. If your insurance agent provided assurance that you're liability is covered under this arrangement in writing, I guess you're good.

As I've said my State Farm agent will not write a policy like this.

Would you mind sharing the name of your insurance company?

You have the LLC for the the cart, or rental properties

Forgot to add that anyone we allow to borrow our cart is fully covered under our policy. It's when there is an exchange of money (like rent) that it becomes a business relationship, and, as such, is not covered.

The carts

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I wonder if a bill of sale for say $1, with the stipulation that it will be sold back to the original owner at same $1 after the tenant leaves...might be possible? :shrug:

If you do a search on this very website you will find loads and loads of information on this topic. Several others have more information than I do. I put my carts into an LLC with the help of Mclin and Burnsid (you know them if you closed on a house through The Villages). I am confident they know what they are doing. Once you get that far, PM me and I can explain what else I did. I use Ocala Insurance. The process is time consuming and expensive. My renters are still not covered, so for many people this would not be worth it...for me, it was.

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I think this could be possible. However, extremely time consuming to make all the appropriate phone calls and contacts. The paperwork for renting is already lengthy enough!

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This would be a great topic for a class at the Lifelong Learning College . . . .Oh wait, never mind.

Good to know Thanks

I just called Progressive insurance. I got a policy on the golf cart, for the renters in my home. I also have been looking around, and foremost was the only policy I could get. But they did not insure the renters. It's now insured with progressive. Good luck folks

So progressive insures renters who drive your golf cart now?

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Yes, Progressive needed there license. So they could be put on the policy

Hey, I would say that I just bought a golf cart for $1. Could you take me to court for not going along with an insurance scam?

The primary purpose of the LLC is golf cart rental. You have in place a rental agreement for your property and a separate rental agreement with the LLC for the golf cart. You get basic insurance for the LLC doing business renting golf carts. You designate a portion of the monthly rental as being for the golf cart.

I have seen Progressive mentioned and I did check with them. And yes they will insure a golf cart for tenants. However when I checked the fine print is was for use on a golf course and getting to and from golf course, not as they are used here.

I have 4 golf carts. Two for rental properties and two for us. All 4 are owned by the LLC. I even have a rental agreement in place for our use of our personal carts. And if sued I could lose all 4 carts as that is the assets of the LLC. Is there still some risk? Yes I am sure lawyers would argue some esoteric BS about trying to get around an insurance issue. I am not trying to hide assets, not setting up insurance fraud, just trying to use the legal entity of an LLC to protect a business. The lawyers I hired to set this up believe this will work. However any lawyer can sue anybody for anything. Doesn't mean they will win, but they can do it.

There is no perfect answer just ways to protect yourself as best as you can. And for me the LLC seems the best way. An expensive way, but the best way.

If you sold the cart, regardless for how long, it is no longer legally yours and it now has a new owner...so I can't see where any 'insurance scam' comes into play.

I'm not saying it is a workable (or even legal) solution...just throwing some 'out-of-thebox' thinking for consideration. :shrug:

What I meant was what would prevent me from keeping the cart that I paid you $1 - and not selling it back to you for $1?

There's that. But in the event of a lawsuit, the cart itself could be the least of your problems. I would run from any insurance company or lawyer that would suggest such a scheme. :22yikes:

Put a date on when the cart must be sold back in the legal document.

Or even structure it as a lease, with the lease dates and the inclusion of when the lease expires...and it reverts back to the original owner.

I can't imagine that with all of the auto's under leases, that there isn't ironclad verbiage to ensure that the lessee doesn't get to keep the car.

Like I said though...it's just a thought. :shrug:

I was in the Progressive office last week near Best Buy and purchased coverage for my 2 cars
I ask about renter golf cart coverage and was told
No Progressive doesn't cover renters
Better make sure

In order to buy an insurance policy, you must have an insurable interest in the car, cart or whatever. How would you explain to your insurance company that the policy you have, actually insures a cart owned by somebody else? "My friend just got in a wreck in his golf cart and it's insured by me"? That won't work.

I agree with your logic. We followed your lead and did the same thing last year. I sleep better at night!

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I assumed (bad idea I know), that it obviously would be incumbent on the person leasing to provide the insurance (and proof of such)...before the lease was valid. Not that you would be carrying the insurance on it.

Having never leased a vehicle myself, I once again 'assumed' that the lessee has to show proof of insurance to the dealership...before they could take possession. The landlord might even be able to discuss this with their own insurance company and have the documents and premium price ahead of time.

And yes, I realize that this may be convoluted, a pain in the arse... and I'm not even sure if it is feasible.

I simply suggested a method by which maybe a landlord could let their renters use their cart (now technically the renters cart)...while still being legally protected. :shrug:

So call me crazy, but I hardly think it would hurt...to at least look into it. :D

If it's possible, it would sure beat being hung out legally...and all the financial grief that would cause.

Judges aren't stupid. This "technique" will rule against you.

IF the renter "leases" the vehicle, you are still the owner. Leasing doesn't transfer ownership. So you haven't accomplished anything. Policy stays in your name and there isn't coverage no matter what you discuss with the agent. You own the cart.

Some months ago the Villages Insurance wrote a definitive article on golf cart insurance for rentals stating nobody insures the cart on a rental. They stated they were in the process of working with an insurer or insurers to try and get a policy which would provide coverage for such use and is most likely what the OP of this thread was referring to.

This issue has been beaten to death and nothing has changed. Coverage doesn't exist for carts rented to others or subject to a rental agreement of any type.