Have you thought about renting a boat on a hot summer day? Do you own a boat and want to make some extra money by renting it out? If the answer is “yes,” there are a few things you need to know first.
I recently came across a website for boat rentals where you can either rent a boat, or rent out your boat for a fee. Being an insurance agent, it had me thinking about coverage for these types of situations and I did some further investigating. My concerns were right—I found the statement from the boat rental company explaining that they do not offer any insurance coverage.
If you are renting a boat…
- Each insurance company has its own restrictions on the type, size and horsepower of boats that they provide coverage to. Depending on the type and size of the boat, there may be no coverage at all from your insurance policy if something were to happen.
- Check with your agent before renting the boat to make sure the boat fits within their guidelines
If you’re planning on renting out or chartering your boat for a fee…
- Renting out a boat or chartering it for a fee is typically excluded from your homeowners or watercraft insurance policy.
- You would need a special policy to cover the risk, because it’s considered a business exposure since you’re receiving compensation for it. Without one, there may be no coverage in an accident.
- It’s best to talk with your agent before you decide to rent or charter it. They can help you get the type of policy you would need for this exposure.
More and more websites and apps are popping up every day for vacation home and boat rentals. They can be an inexpensive and fun way to spend your summer, but you want to make sure you’re not opening yourself up to a potential coverage gap. If you’re planning on providing any type of service or rental for a fee, make sure to contact your agent to get the right policy put in place.
Contact a KnowledgeBroker for more information!