[Sandtrap328]

Originally Posted by Fraugoofy

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!!

[Villageswimmer]

Originally Posted by Fraugoofy

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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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?

[Daddymac]

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

[Villageswimmer]

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.

[Fraugoofy]

Originally Posted by Daddymac

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

The carts

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[ColdNoMore]

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?

[Fraugoofy]

Originally Posted by Villageswimmer

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?

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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[Fraugoofy]

Originally Posted by ColdNoMore

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?

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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[Wavy Chips]

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

[Daddymac]

Good to know Thanks

[Daddymac]

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

[Fraugoofy]

Originally Posted by Daddymac

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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[Daddymac]

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

[Sandtrap328]

Originally Posted by ColdNoMore

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?

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?

[l2ridehd]

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.