Does Homewowners Insurance cover an 18 year old son who rents a vacation home?

Question

I have a vacation rental. I have a season that I could rent to prom groups 18-19 year olds and would like to know if a parent's homeowners insurance policy would cover the kids for liability and property damage?

If they are a resident relative would they not be covered under the homeowners liability policy? Of course my agreement says no illegal acts but if they are drinking and cause injury to themselves or others I really do not want my coverage to be the only policy on the property at the time of loss.

The parents seem reluctant to sign off on the contract, my biggest concern is certainly damage to my property but most important is the liability they may cause while renting the property. My insurance should cover me and protect me but I would also like some peace of mind that they have a source of coverage too.

Many people have told me they wouldn't rent to kids, but I am asking here a contract and legal question not advise.

Thansk for your help!

Answer 1

No.  The homeowners policy has a liability exclusion for any premises owned by or rented to the insured, that isn't scheduled on their policy. So not only is the resident relative thing going to exclude coverage, but there wouldn't be coverage ANYWAY.

So their policy isn't going to cover you AT ALL For damages done by the kids.  

I'd make sure your policy protects you, does your carrier know that this is a rental property?  Most carriers don't like weekend rentals.

That legal question, well, it's going to be up to you to sue the parents, win the judgement, and then try to collect under it.  

Good luck, you're braver than me.

Answer 2

Most Homeowner's insurance policies consider any person under the age of 21 in their care an insured under the policy, therefore they would be covered under their parents policy.

Most Homeowner's insurance policies exclude damage to property used, occupied, leased or rented by or in the care, custody or control of an insured EXCEPT for unintentional property damage to premises owned by others which they are using, renting or have in their control caused by fire, explosion, water damage or smoke. So if one of your renters accidentally causes damage by one of those perils, their parent's liability portion should be able to cover the damage.

Unintentional bodily injury is covered under a liability section, subject to certain exclusions.

Answer 3

You need to contact your insurance company since you are making money on this property and not a host with guests.  Why guess?

Even if they sign off, the parent's homeowner's insurance may not protect your property.  

Whether it is wise to do this, I can't say.  Some kids feel it gives them the right to trash everything and some will keep things clean.  Be sure to have adequate trash cans and trash bags available.  Also, boys of that age will still be play fighting.  Put away anything delicate.

Good luck.  I remember prom night.  We went to someone's lake cottage where we ate all sorts of unusual foods the parents had leftover from their party.  Everyone was very careful of their stuff.  The lake "cottage" was much, much, much nicer than most of our homes.  (completely carpeted, acres of mowed lawn, etc.)