Insurance without an insurable interest

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HadEnuff

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OK, thanks for playing. Here's the situation.
I am wintering in The Villages, a self-described "golf cart community"..

Many people here rent carts for the snowbird season. I'm one of them. However, it turns out that those who rent typically sign a waiver of liability, and acknowledge that they will get their own insurance.

Here's the catch: You can't get insurance on a cart rental. Not for the cart, nor for the liability. I have spoken with several agents, and a retired agent golfing buddy of mine. The stated reason is that you can't insure something you don't have "an insurable interest in".

So here's my question: Do I have an insurable interest in an automobile I rent?

I figure there must be more than a few retired insurance agents out there who can speak to this.

thanks, in advance.
 
I disagree that you do not have an insurable interest...


Just for starters you have liability in case you run someone over and kill them...


Also, as you point out, if there is damage caused by you the rental company will want you to pay just like renting and auto...


The big question is does someone actually write this kind of policy? Seems like there is nobody..
 
If you can suffer a direct loss (financial or other) you have an insurable interest. In liability situations, if you can be held liable for injuries to others or damage to their property, you have an insurable interest. In the case of a rental car, you have at least two insurable interests. You can likely be held liable for damage to the auto and you could also be held liable for injuries or damages to third parties and their property.
 
I had a similar situation renting jet ski's. Nobody will write that line AFAIK, so I bought a running ,registered ski for home. My carrier insures me when using borrowed, rented etc as a replacement. I would not be covered if someone was using mine and at the same time I was at another locale on a rented one.

Short answer ,check with your agent and get. A golf cart at your home base.
 
HadEnuff said:
OK, thanks for playing. Here's the situation.

I am wintering in The Villages, a self-described "golf cart community"..



Many people here rent carts for the snowbird season. I'm one of them. However, it turns out that those who rent typically sign a waiver of liability, and acknowledge that they will get their own insurance.



Here's the catch: You can't get insurance on a cart rental. Not for the cart, nor for the liability. I have spoken with several agents, and a retired agent golfing buddy of mine. The stated reason is that you can't insure something you don't have "an insurable interest in".



So here's my question: Do I have an insurable interest in an automobile I rent?



I figure there must be more than a few retired insurance agents out there who can speak to this.



thanks, in advance.
Click to expand...
I live in TV, too and rent golf carts. I can not find any insurance company to offer my renters insurance, so they sign a waiver. I, as the business owner, have limited liability should I get sued. Even if you rented from THE VILLAGES Golf Carts themselves, nobody has insurance for renters! Crazy!
 
A NY court disagrees with your several insurance agents... as do I. If you have a risk of loss then you have an insurable interest.

https://www.propertyinsurancecovera...hout-having-a-legal-interest-in-the-property/

https://www.propertyinsurancecovera...not-the-only-ones-with-an-insurable-interest/

https://www.thebalancesmb.com/insurable-interest-462705

http://www.jnscoverage.com/resources_pdf/Auto/registering_and_insuring.pdf

Interest in Leased Property
A business may have an insurable interest in property it has leased if it is contractually liable for damage to the property. For example, Bill leases a laundry press that he uses in his dry cleaning business. Bill is liable under the lease agreement for the machine sustains during the term of the contract. Consequently, Bill has an insurable interest in the laundry press. If the machine is damaged by a covered peril , his property insurance should cover the loss.
Click to expand...

https://www.insuringky.com/blog/what-is-an-insurable-interest/

Can you insure a car that is not title to you? In most cases the answer would be no. But there are times when you can. If you lease a car, the title of the car is not in your name. Even though you don’t own it you can insure it. Your lease agreement places the loss of value (other than normal wear and tear) on your shoulders. The agreement most likely goes a step further, by requiring you to maintain insurance for the term of the lease. Bottom-line here is that you to have exposure to a financial loss in the event the vehicle is damaged. Thus giving you, the lessee, an insurable interest in the vehicle.
Click to expand...

Perhaps you can dodge the issue with this structure... you "buy" the golf cart from the lessor for the rental payment and simultaneously enter into a contract to "sell" said golf cart back to the lessor at the end of the lease term for $1... since you technically own the cart you have an insurable interest and can then buy insurance. Since golf carts don't have title or registrations in Florida the hoops that one would need to jump through for autos don't apply... your "purchase" contract is evidence of your insurable interest.
 
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raebaby said:
I live in TV, too and rent golf carts. I can not find any insurance company to offer my renters insurance, so they sign a waiver. I, as the business owner, have limited liability should I get sued. Even if you rented from THE VILLAGES Golf Carts themselves, nobody has insurance for renters! Crazy!
Click to expand...

Hey Rae, I do believe we know each other..(hint hint) we've had recent discussions on this very issue.
 
OK,thanks to all who have pointed out that I do have an "insurable interest"...that makes much more sense to me that claiming they can't write me a policy because I don't have one.

I can see why they might not want to, but I couldn't see how that argument (not having an insurable interest) made any sense.
 
Lakewood90712 said:
I had a similar situation renting jet ski's. Nobody will write that line AFAIK, so I bought a running ,registered ski for home. My carrier insures me when using borrowed, rented etc as a replacement. I would not be covered if someone was using mine and at the same time I was at another locale on a rented one.

Short answer ,check with your agent and get. A golf cart at your home base.
Click to expand...

My niece and her BF recently rented a jet ski on the lake I live on. It wasn't cheap, and the rental outfit insisted on a "chaperone", on another jet ski, who spent the day shadowing niece and BF, wherever they went, the cost of which was bundled into what they paid, of course.

But they had fun. And frankly, I was just as happy they had a chaperone. Jet skis are dangerous if not given due respect.
 
Doesn't an umbrella policy cover this sort of liability?
 
donheff said:
Doesn't an umbrella policy cover this sort of liability?
Click to expand...

You'd have to check the wording of the umbrella policy. In very rare instances it will "drop down" and provide coverage where there's no primary insurance, but this might not be one of them, especially if the golf cart is rented for an entire season.

I'd check with the organization that's making you sign the waiver and ask THEM where they suggest you get coverage.
 
donheff said:
Doesn't an umbrella policy cover this sort of liability?
Click to expand...

my agent has specifically told me that mine will not.

athena53 said:
You'd have to check the wording of the umbrella policy. In very rare instances it will "drop down" and provide coverage where there's no primary insurance, but this might not be one of them, especially if the golf cart is rented for an entire season.

I'd check with the organization that's making you sign the waiver and ask THEM where they suggest you get coverage.
Click to expand...

I have, and consistently get the answer "you should be able to get it from your home and auto agent" which is total BS.
corn18 said:
How much does a golf cart cost?
Click to expand...

a decent used one, with the necessary add-ons, 4-6K,,,brand spanky new nice one 10-12K, but you can spend a lot more if you want something swanky. I'll probably spend 8-12 depending on if I find a used one I like, or go new.
 
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corn18 said:
How much does a golf cart cost?
Click to expand...

Texas Proud said:
It is not just the cost of the cart... what happens if you ran over a cardiologist and killed them? Big liability...
Click to expand...

I assumed the point of the question was to explore the option of just buying a cart, and being able to insure it since I own it, rather than renting, which is likely the way I will go.
 
corn18 said:
How much does a golf cart cost?
Click to expand...
In The Villages a new 2 seater Yamaha gas golf cart that is "Villages" ready starts at about $12,000 and with options typically runs about $14,000 plus tax.
 
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