Insurance

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01/19/2012

When you open a bed and breakfast, is your house insurance increased?  If so, what else is increased?

Proud Texan's picture
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05/30/2008

We have insurance for our B&B ($1 million liabilty)  AND homeowner's insurance with a blanket policy that covers everything in between.    We made ourselves an L.L.C. with the B&B Insurance covering that.  

According to our lawyer,  if someone were to be injured and sue,  they could only sue the L.L.C. and would go after the bigger pockets of the insurance company.  In Texas, anyway, this protects your homestead and personal property from being attached to  such a lawsuit.

If you are not sure,  TALK TO YOUR LAWYER and make sure your hind end is covered.   

YellowSocks's picture
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05/22/2008

Olga wrote:
When you open a bed and breakfast, is your house insurance increased?  If so, what else is increased?

I just re-read your question. My utility bills all increased. I added a biz checking and savings accounts, and started collecting tax, so my paperwork increased.  My laundry became a mountain. My cleaning unending.

But I also meet a lot more people... so it all works out.

=)
Kk.

YellowSocks's picture
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05/22/2008

Yes, you need biz insurance, and yes, it costs more, but it covers a lot more, too.

What you need depends on your location. In my town one or two rooms comes under "home occupation" and is acceptable without a zoning variance or much else for that matter.  I still have to charge taxes and all that, though.

=)
Kk.

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01/19/2012

Thank you so much for your feedback.

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05/30/2008

You will need business insurance.  You can google bed and breakfast insurance and probably find some of the reliable players for the industry. 

I'd also suggest taking an aspiring innkeeper's class or a local small business workshop to get more answers specific to your location, or proposed location. 

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~ Anton Chekhov

 

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10/07/2008

 Here is a great book by a trusted source!

http://www.amazon.com/Running-Bed-Breakfast-For-Dummies/dp/0470426829

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EmptyNest's picture
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05/22/2008

 I think you need to take an aspring innkeeper class and get some facts. Most home insurances will not cover B & B's you will need commercial insurance. And it alll depends on who you get insurance with. The questions you are asking here lately seems to me you need to be reading at least a book on innkeeping or looking through and reading some of the past posts via search.

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01/19/2012

catlady wrote:

 I think you need to take an aspring innkeeper class and get some facts. Most home insurances will not cover B & B's you will need commercial insurance. And it alll depends on who you get insurance with. The questions you are asking here lately seems to me you need to be reading at least a book on innkeeping or looking through and reading some of the past posts via search.

Just thought I'd ask some basic questions while I'm trying to decide on what direction I should go. 

Thanks

Highlands John's picture
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04/16/2010

I'm in the UK and our B&B insurance is only a little more than home insurance. We have a package that includes building, contents and public liability.

But then in the UK a B&B (six guests or less) still counts as a domestic residence not a commercial property, so may be different where you are.

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If you wanted hotel facilities you should have booked a hotel and paid hotel prices!!!

 

egoodell's picture
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06/01/2008

You cannot use regular home insurance. You have to get insurance for a B&B business. If you use home insurance you'll risk losing your home.

RIki 

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Arcady Vineyard Bed & Breakfast
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www.arcadyvineyard.com
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01/19/2012

egoodell wrote:

You cannot use regular home insurance. You have to get insurance for a B&B business. If you use home insurance you'll risk losing your home.

RIki 

 

Is it a lot more than regular house insurance?

Innkeep's picture
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06/04/2008

Yes, it is likely to be more than homeowners insurance.  You also need to check with zoning regulations in your town in order to see if opening even a 1 room B&B is allowed.  Local health departments will also have rules about what might be required in your kitchen.  For instance, I have to have a separate handwashing sink and there are temperature requirements about how hot my dishwasher has to get the water.  I also had to get a food handler's certification.

egoodell's picture
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06/01/2008

Olga wrote:

egoodell wrote:

You cannot use regular home insurance. You have to get insurance for a B&B business. If you use home insurance you'll risk losing your home.

RIki 

 

Is it a lot more than regular house insurance?

I don't know your situation and am not an insurance broker. I suggest you check wtih Markel - that's who we use. Sounds to me like you need to attend an "Aspiring Innkeepers" class or contact your state B&B Association.

RIki

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