Who's Responsible if Renters Break the Boat?

When you rent out your home to the public, you need to be aware of all the potential risks to each piece of your personal property and plan for each one in advance. If you rent out your vacation home and one of the renters damages or breaks your boat, insurance claims may have to be filed. The question to answer first is whose policy you'd go through. 

Luckily, an independent insurance agent can not only answer this question for you but also help you get set up with the proper coverage. Independent insurance agents are experienced in handling all kinds of incidents, so they know exactly what kind of protection you need, and they’ll get you set up with it long before you ever need to file a claim. But first, here's a breakdown of which and whose insurance policy would cover your broken boat in this scenario.

If Renters Broke the Boat at My Vacation Home, Whose Insurance Would Pay for It?

While the renter damaged or broke the boat at your vacation home, you’d still more than likely go through your personal insurance policy to repair or replace it. To protect your boat and be able to recover from any damage to it or caused by it, you’d want to have a personal watercraft insurance policy, also commonly called boat insurance. Your independent insurance agent can help you get set up with all the coverage you need for your boat and other special vehicles.

How Does Watercraft Property Damage Coverage Work?

Personal watercraft policies include coverage for property damage. Watercraft insurance provides protection for physical property damage to your boat and others’ boats if you’re at fault for an incident. 

If renters damaged your boat while staying at your vacation home, the property damage coverage section would pay for its repairs or cover the replacement value if it was destroyed, often minus the cost of depreciation.

Watercraft insurance operates very similarly to auto insurance. After a covered accident, your insurance company reimburses you for necessary repairs. Similarly with boat insurance, if your boat hit another person’s vessel and you were at fault, your policy would also reimburse for damage to the other watercraft. Make sure to work with your independent insurance agent to get your boat covered against all unforeseen incidents.

Would Liability Insurance Cover Injuries to the Renters?

If the renter who destroyed or damaged your boat also injured themselves or someone else, you could get sued as the boat’s owner. Regardless of whether you’d actually be found liable in court, you’d still need the protection offered by the liability coverage section of your personal watercraft policy. 

Boat insurance’s liability coverage reimburses boat owners for:

• Medical payments: This covers the costs of injuries to a third party, including medical bills like hospital and doctor visits if someone gets injured by your boat or while operating it.
• Legal fees: This covers attorney, court, and other legal expenses, including any settlements you’re ordered to pay if you’re found responsible for the claim.

Ending up with a lawsuit after renters stay in your vacation home could be enough to deal with in the first place, but at least a personal watercraft policy could help provide you with the necessary liability coverage to protect you against related expenses legally.

What’s Not Covered by Personal Watercraft or Boat Insurance?

Personal watercraft insurance or boat insurance provides lots of critical protection for boat owners, but of course, these policies come with exclusions. The following incidents are not covered under watercraft insurance:

• Non-owned watercraft: Injuries or damage caused to or by a rented watercraft are not covered by a watercraft policy. However, endorsements for this coverage can be added to your insurance.
• Intentional injury: If you or another driver harmed someone else with your boat on purpose, your insurance wouldn’t cover you for this incident.
• Using your watercraft for business purposes: Similar to other types of insurance, watercraft policies come with exclusions for business use of your boat, such as deliveries.

Your independent insurance agent can help your boat get covered against any catastrophes you might be concerned about beyond the typical coverage provided by boat or personal watercraft policies.

Save on Boat Insurance

Our independent agents shop around to find you the best coverage.

Request a quote

What If I Didn't Have Insurance?

Without a personal watercraft insurance or boat insurance policy, if your boat got broken or damaged by a renter, you might be left to cover the damage out of your own pocket. Your homeowners insurance or other vacation home policy would not cover the repair or replacement of your boat. If your boat is particularly valuable, you’ll want to make sure it’s equipped with all the coverage it needs before you ever take it out on the water, let alone allow anyone else to use it, including renters.

What If the Renter Damaged My Vacation Home with the Boat?

To protect your vacation home, you’d need to rely on the insurance policy in place to protect the physical structure itself. If you’re officially in business as a vacation home host, you’d go through the property damage section of your landlord insurance to pay for the repairs. 

If you rent out your vacation home through Airbnb, the insurance you purchased through the company should cover damage to your physical property by renters.

Do My Renters Also Need Insurance?

Renters who stay at your vacation home don't need additional coverage beyond what they already have. Renters are protected while staying at a vacation home by their homeowners or condo insurance the same way they would be if they were staying at a hotel. 

Homeowners and condo insurance protect renters from potential costs that can arise from causing damage to the vacation home and also protect their personal property against damage and theft during their stay. However, the renters’ coverage is likely to be more limited than it would be in their own homes.

Other Risks to Your Vacation Home Worth Considering Additional Coverage for

Aside from negligent boating incidents, renting out your vacation home to the public comes with a long list of potential risks, and you need to anticipate all of them ahead of time. Before ever advertising a vacancy to the public, you’ll want to get set up with coverage against each of the most common hazards for vacation home hosts.

Common risks of renting out your home include:

• Theft: Dishonest tenants might steal from your property or business, whether it’s property, inventory, or money.
• Business expenses: Turning your vacation home into a rental requires lots of extra work and capital. Once your vacation home becomes a rental property, it must be stocked regularly with toiletries and more.
• Property damage: If you end up with disrespectful or just plain negligent tenants, your property’s structure or furnishings may get damaged or destroyed.
• Failure to get tenants: One less obvious risk is the inability to get tenants to rent out your property at all, which could lead to a serious loss of investments.

Your independent insurance agent can work with you to address each of these areas of concern before you officially open your vacation home’s doors to the public.

How an Independent Insurance Agent Can Help

When it comes to protecting your boat and vacation home against negligent renters and all other costly incidents, no one’s better equipped to help than an independent insurance agent. These agents search through multiple carriers to find providers specializing in personal watercraft insurance, landlord insurance, and any other types of coverage you may need, deliver multiple handpicked quotes, and help you walk through them all to find the best overall blend of coverage and cost. Plus, they'll be there to help you file claims down the road if the time comes.