SOT: Need liability insurance for a lease garage with "challenges", sweet workshop for my 914 activities! Options

[914rrr]

I was just about to sign a lease on a sweet 960 sf garage / workshop with a similar size barn roofed top floor, 200 amp electric and a full bath for stupid cheap.

The problem is, the garage is at the back of a lot shared with the main house in front with another business. The property is zoned C-2. The lease required $100k liability insurance.

The insurance broker I asked for a quote tried several different ways to write it and later said he couldn't write it unless the lot was separated by a property line.

Is this insurance broker overthinking this or is this problematic? Any / all ideas, suggestions, etc., on how to obtain liability insurance for this garage would be greatly appreciated!

[dakotaewing]

Liablity insurance requirement for leased properties is not an odd thing these days. It protects the property owner, and you if something odd might happen. I guess the question is : are you doing business from this property, or is it a shop that you are using for your private use?? Do not fudge the answer on this, as it would result in the denial of any possible future claims. Those questions being asked, have a conversation with the owner / leasing agent about what was provided in the past by prior tenants, including the carrier. Going back to the same carrier might be the solution as they have previously underwritten the property. Liability coverage for a non business should be a couple hundred bucks a year for $100K.

[914rrr]

Liablity insurance requirement for leased properties is not an odd thing these days. It protects the property owner, and you if something odd might happen. I guess the question is : are you doing business from this property, or is it a shop that you are using for your private use?? Do not fudge the answer on this, as it would result in the denial of any possible future claims. Those questions being asked, have a conversation with the owner / leasing agent about what was provided in the past by prior tenants, including the carrier. Going back to the same carrier might be the solution as they have previously underwritten the property. Liability coverage for a non business should be a couple hundred bucks a year for $100K.

Thanks for the reply!

Personal use only for teener repair and a place to store my DD, tools, and other stuff.

This is the first time the landlord has leased out the garage separately. Previously the pottery and wine biz in the front building was also leasing the garage. For whatever reason, they are no longer leasing it. So no existing separate policy or coverage on the garage.

The landlord agreed to make the liability insurance optional to give me time to find coverage after signing the lease.

Q: Would an umbrella policy cover something like this garage?

Q: I also have coverage with Hagerty for my 75 1.8. Could that policy have a rider added to include liability on the garage?

[dakotaewing]

Q: Would an umbrella policy cover something like this garage?
Thats a question for your agent. Make sure you ask, and get the answer in WRITTING!
if your agent asnwers this incorrectly, and you relie on that info for coverage,
you would have to prove that they misled you in order to get coverage through the agents E&O,
which is not a fun process for any related party to that type of claim.

Also, the landlords usually require to be an additionally named insured on the liability policy.

Q: I also have coverage with Hagerty for my 75 1.8. Could that policy have a rider added to include liability on the garage?
Highly unlikely, but call hagerty and ask as they are an "out of the box" carrier....

[930cabman]

If it looks too good to be true, .........

[rick 918-S]

Check with your home owners policy/agent. Get an extension for your liability coverage to an off premise address. I did that with a lake property i owned.. maybe is was an ownership thing but it is worth asking.

[914rrr]

Check with your home owners policy/agent. Get an extension for your liability coverage to an off premise address. I did that with a lake property i owned.. maybe is was an ownership thing but it is worth asking.

Thanks Rick, wish I could unfortunately that doesn't apply as I'm no longer a home owner.

[fiacra]

When we were renters our renter's insurance included liability coverage. Since it is a rented property, and you are not using it for a business, this might be the solution? I did a quick search and most renter's insurance includes $100K liability coverage. Our umbrella insurance does also cover liability, but only in excess of the liability covered by our homeowner's and automobile insurance. In other words it will not provide primarily liability coverage.

NB: I'm NOT an expert in insurance and what it covers. Just speaking from personal experience.

[914rrr]

When we were renters our renter's insurance included liability coverage. Since it is a rented property, and you are not using it for a business, this might be the solution? I did a quick search and most renter's insurance includes $100K liability coverage. Our umbrella insurance does also cover liability, but only in excess of the liability covered by our homeowner's and automobile insurance. In other words it will not provide primarily liability coverage.

NB: I'm NOT an expert in insurance and what it covers. Just speaking from personal experience.

Thanks for sharing! We tried that angle and it didn't work for some reason. I'm staying with my mom in KY to help her out / keep her company after my wife passed and the garage is in TN. Maybe the garage being in another state was the issue?