Insurance question for renting my class A

[psurich]

We have a 34 ft Winnie m/ h that we would like to rent. The problem is my insurance. My current insurer will drop me if I choose to rent it out. They told me I need to purchase a commercial policy. As anyone rented their m/h out and how did you deal with the insurance.
Thank you for any help or advice,
Rich

[way2roll]

DownTheAvenue wrote:
As an attorney, I can tell you renting any personal property is just asking for trouble. Good for you for asking about insurance. If you want to RV, just RV. If you want to rent an RV as a potential income generator, then buy a RV for that purpose. Do not mix the two!

This is a good point, when we started our RV rental business we did it under an LLC and bought units specifically for the purpose of renting. We kept our personal MH out of the mix. And despite having units specifically for the purposes of renting, and vetting our clients, we still had our disheartening share of incidents. Things jammed in the toilets, awning arms ripped off, bins smashed, heck one group must have gotten on the roof (despite being in the contract not to do this) and cracked the skylight. Even when nothing was broken, they usually came back very dirty (despite a cleaning fee), so a deep and thorough cleaning was always necessary. Despite an extensive walkthrough of the tanks - and a fee if not dumped - they usually came back needing dumping etc. This business is NOT for the feint of heart and I would NEVER subject my own RV to renting it unless I were in such dire straights I had no choice and could remove myself from it emotionally. Never mind it's a lot of work. A LOT of work. Deep cleaning, inside and out every few days. If you have ever washed your RV and shampooed carpets, scrubbed and detailed every inch inside and out, you know the amount of work involved. Try that 1-2 times a week, every week. For us it was multiple RV's. That and managing the clients, it's a full time job.

Best case scenario you make some cash and nothing happens to your RV - it will, but hypothetically - the mileage will still accelerate your RV's depreciation, more frequent maintenance, your time and everything it takes to manage it, to a point that almost offsets any cash you made.

RV rentals is a business, and under the right structure, the proper accounting and taxes etc, it can be lucrative. But I would strongly advise against renting your personal RV unless you no longer care and don't ever plan on selling it for anything close to what it's worth.

And if all that doesn't scare you or you are in a position where you feel like you have to, if you have a loan, check with your bank. They likely have clauses that prevent you renting it.

Good luck with whatever you do. If you do decide to rent, feel free to reach out to me via PM, I can try and offer any advice you need.

[drsteve]

Bad idea.

[Lwiddis]

I’m betting you’ll never be in the black.

[DownTheAvenue]

As an attorney, I can tell you renting any personal property is just asking for trouble. Good for you for asking about insurance. If you want to RV, just RV. If you want to rent an RV as a potential income generator, then buy a RV for that purpose. Do not mix the two!

[psurich]

Thank you we are just getting options at this point.

[way2roll]

We used to own an RV rental business. You have a few options; pick up a commercial rental policy. I think the only game in town is MBA and it was about $800/month for $1MM in liability (it's based on the value of the unit and we had new Class A's so yours may be cheaper).MBA does provide you all the contracts etc. The other option is have your renters add a temporary rider on their policy for an RV rental. Their policy may or may not have this and your insurance still may cancel you if they find out. The only other option is to find a company that manages your rental and puts it in a stable of units for rent. They manage the rentals, the clients, the insurance etc - all for a fee of course.

FWIW - Don't rent your RV if you care about it at all. Despite how well you screen your clients, most folks simply do not care about things they rent. Add to that - people who have never used an RV before etc. In short, it will rack up miles, gets used and abused and often trashed and damaged. Rv rentals is a business. It's not for the faint of heart renting your personal property.