Parking Space Insurance?

[BrooklineBiker]

Hi everyone,
My wife and I live in a condominium in Massachusetts. We have a driveway with 1 (one) unused parking space. We wish to rent it on a month to month basis. The provider of our homeowner's insurance policy and master complex policy tells us that nether policy would provide coverage from liability arising from renting the space. (Snow and ice slip and falls and car accidents are common in this area). The provider further says that the only way to get coverage is to buy a special policy through a so-called excess market provider (such as Lloyd's of London) for a cost of $520 annually. The $520 must be paid up front. We were planning to charge $150 per month and hoping to pay the insurance in monthly installments for as long as we had an occupant for the space. I would not expect the space to be rented throughout the year. The cost of insurance, taxes, and snow removal could collectively render this rental a money loser. Are there alternative insurance companies that anyone can recommend? Are there are alternative ways to reduce our risk?
Thanks!

[Christof]

Can you legally limit liability to the value of the car or a certain amount and do you have enough in savings to cover this? If so it might be better not to insure. You would loose money in the unlikely event of damage happing, but otherwise save...

Obviously this won't work if you might have to cover a really high amount.

[BrooklineBiker]

Can you legally limit liability to the value of the car or a certain amount and do you have enough in savings to cover this? If so it might be better not to insure. You would loose money in the unlikely event of damage happing, but otherwise save...

Obviously this won't work if you might have to cover a really high amount.

Hi Christof,
Thanks for the ideas. In my state, the enforcement of waivers of liability or caps on liability is very much at the discretion of a judge.

[unpolloloco]

Would an umbrella policy cover it?  Probably would be cheaper and a good idea to have anyway!

[BrooklineBiker]

Hi  all,
We have homeowners and a master condo complex policy.
How would an umbrella policy be different?
Thanks,
Neil

[nawhite]

Generally an umbrella policy covers liability above and beyond your liability limits on your auto and homeowners insurance. For example, lets ignore the parking spot for the moment and just play with the sidewalk in front of your house. Lets say someone slips and falls on the sidewalk in front of your house and gets permanently paralysed from the neck down. Lets say they sue you for 1 million dollars. If your homeowners policy has a liability deductible of 500k, then you are personally responsible for the second 500k (most people would have to declare bankruptcy). The umbrella coverage would kick in and cover that 500k instead.

Some umbrella policies will cover liability from rental houses. So if there is a gas leak which blows up the house and burns a tenant badly and they sue you the umbrella coverage would cover the liability from the tenant while you would likely have a separate homeowners policy for the value of the rental unit. This seems really similar to the rental parking space. You should contact your homeowners/auto insurance company and discuss an umbrella policy and see if the parking space would be considered the same as a rental property for liability coverage purposes (get it in writing).

But I agree with the other posters that it would probably be your best bet. I was quoted $150/year for $1 million in coverage at Geico but YMMV.

[BrooklineBiker]

Generally an umbrella policy covers liability above and beyond your liability limits on your auto and homeowners insurance. For example, lets ignore the parking spot for the moment and just play with the sidewalk in front of your house. Lets say someone slips and falls on the sidewalk in front of your house and gets permanently paralysed from the neck down. Lets say they sue you for 1 million dollars. If your homeowners policy has a liability deductible of 500k, then you are personally responsible for the second 500k (most people would have to declare bankruptcy). The umbrella coverage would kick in and cover that 500k instead.

Some umbrella policies will cover liability from rental houses. So if there is a gas leak which blows up the house and burns a tenant badly and they sue you the umbrella coverage would cover the liability from the tenant while you would likely have a separate homeowners policy for the value of the rental unit. This seems really similar to the rental parking space. You should contact your homeowners/auto insurance company and discuss an umbrella policy and see if the parking space would be considered the same as a rental property for liability coverage purposes (get it in writing).

But I agree with the other posters that it would probably be your best bet. I was quoted $150/year for $1 million in coverage at Geico but YMMV.

Hi nawhite,
Thanks! This is great information. I will follow that up tomorrow. We have a busy sidewalk and a snowy climate so the umbrella policy might solve multiple problems. Do umbrella policies only fill in for gaps in coverage caused by deductibles or do they provide coverage by themselves? Or both?
Best,
Neil

[This_Is_My_Username]

have you considered not insuring?


it seems like you are worried about a tiny-likelihood event.

[BrooklineBiker]

have you considered not insuring?


it seems like you are worried about a tiny-likelihood event.

Hi
Thanks.As mentioned above, we live in a snowy and icy part of the world. The risk is not small. So, what are the insurance options?
Best,
Neil

[GuitarStv]

Check with your city bylaws.  Here in Toronto it is actually illegal to rent out your driveway as a parking space.  Comes with a 25-50,000$ fine if you're caught.

[SnackDog]

Might be cheaper to just spread some kitty litter out there every morning to keep it safe.

[jba302]

How do you have a driveway for a condo? Who is responsible for the driveway maintenance, salting, and snow removal?

[nawhite]

Lets say they sue you for 1 million dollars. If your homeowners policy has a liability deductible protection amount of 500k, then you are personally responsible for the second 500k (most people would have to declare bankruptcy). The umbrella coverage would kick in and cover that 500k instead.

Hi nawhite,
Thanks! This is great information. I will follow that up tomorrow. We have a busy sidewalk and a snowy climate so the umbrella policy might solve multiple problems. Do umbrella policies only fill in for gaps in coverage caused by deductibles or do they provide coverage by themselves? Or both?
Best,
Neil

I misspoke in my original post. Deductible is not the correct word to use.

Generally umbrella policies are advertized as filling in gaps or protection limits which are too low in other coverages. However they do cover some things themselves. The most common coverage that umbrella policies provide themselves is the liability protection for rental units. Some homeowners policies will cover this for rental units but generally it is a much better deal to get the umbrella policy for the coverage.

Umbrealla policies also will protect you if you are sued for slander or libel and a few other things you can be sued for but you'd have to ask your insurance agent/company.

[BrooklineBiker]

Hi Nawhite,
Thanks for your posting a few days back. I emailed my insurance broker asking about an umbrella policy. This is the response I received: "Umbrella policy will not work, since this comes in over your primary home policy and your home and master policy will not cover rental of parking space liability."
Do I have any other options?
Thanks,
Neil

[SnackDog]

Lloyds of London is always the insurer of last resort.

[chasesfish]

Unfortunately Massachusetts is the most restrictive insurance states, so most carriers just choose not to do business there.  I think the Lloyd's quote is the best you're going to do

[BrooklineBiker]

Lloyds of London is always the insurer of last resort.

Thanks!

[BrooklineBiker]

Unfortunately Massachusetts is the most restrictive insurance states, so most carriers just choose not to do business there.  I think the Lloyd's quote is the best you're going to do

Hi chasefish,
That is a bummer. Cannot say I am surprised.
Best,
Neil