[lightworker888]

I just called Allstate and discovered that our golf cart coverage no longer includes renters. Apparently there have been so many claims for rental carts that Allstate is no longer including them. Even if they are just given permissive use, the company is going to be changing that in a couple of months, which could happen before the winter rental time. The Allstate gal also said that if the renters hit someone, then the owner of the cart is liable and that is not covered if the renters are driving the cart.

Has anyone figured out how to get insurance on the cart for the renters? Any input is welcomed.

LW888

[tkret]

Originally Posted by lightworker888

I just called Allstate and discovered that our golf cart coverage no longer includes renters. Apparently there have been so many claims for rental carts that Allstate is no longer including them. The Allstate gal also said that if the renters hit someone, then the owner of the cart is liable and that is not covered if the renters are driving the cart.

LW888

LW888 ... I was in my insurance agent's office just a couple of days ago and you are quite right! Allstate along with the other insurance companies will NOT honor a policy in which a renter is driving. My independent agent claims that the front-line employees for Allstate were not aware of this until recently when the top level folks denied a claim and left the cart owner high and dry and on his own.

[golf2140]

Great post, thanks for the information. Maybe less renters on the roads.

[lightworker888]

Has anyone found a solution to this?


LW888

[borjo]

I called our local office that we have the insurance through. They said they do not know what the final decision will be. I should check back at the end of this month.

[nitehawk]

I wonder if that applies to visitors as well, not just renters.

[lightworker888]

currently if you give permission to someone to use the golf cart, they are covered but if it is in a lease then they are not.

However, the powers that be are in the process of changing their stand and that is what we are waiting for. My challenge is what to say and do about renters that are lined up for the winter as the ruling is apparently coming down in the next few months.

I am checking with the lawyer to see if there is a release form that will stand up in court that will waive our liability.

The insurance gal said that regardless of the current waiver that our renters have signed, if they hit someone, we could be sued as we own the cart.

I find it all very confusing and think that there must be some solution that is a win-win considering all the number of owners who rent out their places with golf carts.

Anymore info would be apreciated and I will post whatever I find out when I hear back from the lawyer.

LW888

[l2ridehd]

I checked with my insurance company and as with others, it appears to be "under review". Not real sure what that will cause for an out come, but it is sure to have an impact. When I first set mine up, I added a significant umbrella policy to my insurance that will also cover rental property. Not sure if that will help, be required, or have any impact once they make a decision.

There are several people who rent carts as a business and they have to have insurance available. So it will be available, it is just a matter of at what cost. Either way it will impact the rental business which will impact the home sales business. I was going to buy another rental property, but for now will wait and see where this issue lands. Almost any solution will add cost someplace.

[tkret]

Originally Posted by lightworker888

I am checking with the lawyer to see if there is a release form that will stand up in court that will waive our liability.

The insurance gal said that regardless of the current waiver that our renters have signed, if they hit someone, we could be sued as we own the cart.

Anymore info would be apreciated and I will post whatever I find out when I hear back from the lawyer.

LW888

I'm not an attorney and I'm wondering if this will "fly". I sign a separate agreement with a renter that, in the even they cause injury or damage, I can go after them if/when someone is successful against me the owner of the cart. Thus, if the renter uses the cart and causes, let's say, $10,000 property damage (and more for personal injury) and I make the injured party whole, I then can sue the renter for the same amount plus fees to make ME whole.
Any attorneys out there who can shed some light on this?

[dillywho]

Maybe it would be best not to furnish a cart with the rental and just rent for a few dollars less. They could then rent a cart from someone in the cart rental business.

[bimmertl]

The "rented to others" exclusion has been around forever. It's not surprising to me the crowd at the Allstate office wasn't aware of it, as there is plenty they don't know when it comes to actual policy language.

Florida has a "dangerous instrumentality" doctrine that makes owners of cars, golf carts etc. liable for damages caused by permissive users. You can always pursue the renter for damages you pay as a result of their negligence, however good luck with that.

Some insurance company's sell a policy to cover non owned vehicles but I don't know who they are. Don't think Allstate , SF, etc. do but might find somebody.

Bottom line, it's a mess!!

http://abnormaluse.com/2010/10/judge...dangerous.html

[tkret]

Originally Posted by bimmertl

Florida has a "dangerous instrumentality" doctrine that makes owners of cars, golf carts etc. liable for damages caused by permissive users. You can always pursue the renter for damages you pay as a result of their negligence, however good luck with that.
Bottom line, it's a mess!!

http://abnormaluse.com/2010/10/judge...dangerous.html

bimmertl ..... excellent link. Many thanks for helping to get us educated on this subject.

[lightworker888]

because the cart is ours, an injured third party could sue us. She said that there is no legal document that we could create to absolve us of liability. The insurance company said to take out the cart clause in the lease and use the permissive use form for now. When the ruling comes down the agent said that all policy holders would be notified of the change and the policy may be unrenewable as it stands and a new policy would have to be issued.

We have issued a new lease w/out the golf cart and have a release form signed for it and our renters are looking into what their homeowner poiicy might cover.

I called a few golf cart rental places and they said that they do not cover the drivers and have a form signed. No one knows of any company that is currently issuing coverage to renters for golf carts. Sounds like a great opportunity for someone if the claims aren't too bad. I guess that the number of claims have increased so much that the insurance companies don't want to deal with them.

I am thinking that renting w/out the cart may be the best bet but can't do that this year.

Any other ideas?

LW888

[Carla B]

So what's an owner to do? There was a discussion here recently asking if prospective renters would look at a property without a cart. The majority said they'd want to rent a property with a cart.