If you own property near the coast of Florida, there's ample opportunity to make some extra money from renting out your home. But once you allow someone else to occupy your home and use your property, you run the risk of that person damaging your stuff. So what happens if your renters take out your boat and crash it? Do you have to pay for it, or them?

Before you dive into renting out a property, a Florida independent insurance agent can make sure you're set up with the right insurance. They know which coverages you need for unexpected events that may occur at your rental home and can get you protected long before you need it.

Renters Damaged My Boat at My Vacation Home, Who's Responsible?

If you're planning on offering a boat at your vacation home for renters to use, you'll want to take a few steps to make sure you're protected. If renters were to damage your boat, they would not be covered under a standard boat insurance policy unless they were listed as covered drivers. You would need a commercial boat insurance policy to cover damage caused by the renters.

It's a good idea to have a policy drawn up that clearly outlines where the responsibility falls if the renters choose to use the boat at the property. Even with a policy in place, commercial boat insurance can protect you if something goes wrong and the renters do not take responsibility.

What Does Boat Insurance Cover in Florida?

Boat insurance can cover any damage that is caused with your boat and damage sustained by your boat. There are different policies based on the type of watercraft you own, but most boat insurance policies start with standard liability and property coverage. There are several additional coverages you can add.

• Boat liability insurance: This helps pay for third-party injuries and property damage that you or someone else causes with your boat.
• Physical damage insurance This helps pay to repair or replace your boat if it's damaged in an accident. It doesn't matter who is at fault.
• Comprehensive insurance: Similar to comprehensive coverage on a vehicle, this helps pay for damage from non-collision events. 
• Medical payments insurance: This helps pay for injuries that you or your passengers sustain if you're in a collision with another boat or object. It does not matter who is at fault. 
• Underinsured/uninsured boaters insurance: Helps pay for injuries you and your passengers sustain if you are in a collision caused by an uninsured or underinsured boater.
• Equipment insurance: If you keep sporting or fishing equipment on your boat, this can help pay for any damage to those things.

Depending on how often you operate your boat, you may not need all of these coverages. But if you plan on leaving your boat available for use by someone renting out your home, it's best to speak with an agent to ensure that you're fully protected. 

How Common Are Boating Incidents?

With easy access to the ocean and lakes, Florida is a great place to take out a boat. That's why the state ranks number one in the nation for the number of registered vessels. Unfortunately, it also has the highest number of boating accidents. Below are stats from one recent year.

Florida boating accident stats

• 836 boating accident cases
• 79 boating accident deaths
• 5 missing persons who have been presumed dead
• 534 boating accident injuries
• The leading type of fatal boat accident in Florida was falling overboard, leading to drowning.

As you can see, boating incidents are more likely to occur than you may think, so having the right coverage can protect you from unforeseen events. 

Do I Need Boat Insurance along with Landlord Insurance to Receive Coverage?

Boat insurance and landlord insurance are two different types of coverages. Since you collect income from your rental property, you would need a commercial boat insurance policy if you wanted your boat to be covered as part of your rental property. If there is an incident involving your boat, you would file a claim with your boat insurance policy, which would reimburse you for repair or replacement of the boat.

Landlord insurance is similar to home insurance in its coverages, which we'll discuss more shortly. Like homeowners insurance, it does not extend coverage to a boat.

What Does Landlord Insurance Cover in Florida?

Landlord insurance is similar to home insurance in that it provides coverage for the structure and dwelling of the home and your personal possessions inside the house. Standard policies in a landlord policy include:

• Property damage: This includes damage to the dwelling, detached structures, and your personal property from perils such as fire, theft, storm damage, vandalism, and tenant damage. 
• Liability insurance: Liability coverage helps pay if you're sued by a tenant, visitor, or another third party who may be injured while on your rental property. It also pays for costs associated with bodily injury claims. These costs can include:
  • Medical payments
  • Funeral costs
  • Legal fees
  • Judgment and settlement costs
  • If you're found responsible for damage to someone else's property
• Loss of income: If your rental property needs to be vacated because of a covered peril, such as a fire, this helps cover the potential income you lose by not being able to rent out your property.
• Optional coverage: Additional coverages to speak with your agent about include rent guarantee insurance, flood insurance, natural disaster insurance, employer liability insurance, and landlord contents insurance to cover your personal property items such as furnishings or carpets in the rental property. 

If you want to turn your Florida property into a rental, an agent can walk you through the variety of coverage options available and guide you in selecting the best policy. 

Am I Responsible for Covering Any Damage Caused by the Renters?

Unfortunately, any damage that the renter of your property causes will probably need to be filed against your insurance policy. The good news is that your landlord policy is designed to protect you against damage caused by the tenant to the property. In addition, commercial boat insurance protects you against any physical damage caused to your boat, even if it's not your fault.

You can also require your renters to obtain renters insurance. This assists them in having coverage for the personal property that they bring into the home.

If This Is an Airbnb, Does Airbnb Provide Any Financial Protection?

If you're renting out your home through Airbnb, you could take advantage of insurance options offered through Airbnb in addition to purchasing your own coverage. In particular, Airbnb offers host liability insurance. 

• Airbnb host liability insurance: Provides $1 million in coverage if a guest is injured or belongings are damaged or stolen while staying in your rental home. 

This policy will not protect you from non-liability events such as the renter damaging your boat. To be fully protected, you would want to consider the financial protection offered through Airbnb as well as landlord insurance and boat insurance. 

How Can a Florida Independent Insurance Agent Help?

The Sunshine State is a paradise for boaters and vacation goers. If you're renting out your home and your personal property, you want to be covered with a comprehensive insurance policy that protects you from any unforeseen risks. A Florida independent insurance agent knows which policies you need to protect your home and your stuff.

Agents are located across the state and will chat with you, free of charge, to learn about your insurance needs. Whether you're looking to rent your home for a few days at a time or as a full-time rental property, they'll guide you in getting the coverage you need at a price you can afford.