Proud Texan
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I have a call in to my insurance agent, but I thought I would poll the group here. We have been presented the opportunity to become the leasing agents for another accommodation that is nearby but off our property. It's a cabin with full kitchen, living area and private bath with two bedrooms. The thought is to use it for extended stays.
We will lease the structure from the owner and run it as if it were an extended part of our B&B and be completely responsible for all aspects of its operation. In return, we get a large percentage of the profits and the owner gets a tax write-off. This was his mother-in-law's house until she passed away earlier this year.
My question is about liability insurance. If we are leasing the property under the umbrella of our LLC, would our liability insurance we sufficient or would the owner of the property need to carry his own policy. I'm thinking the latter scenario is the most likely.
Do any of you have a similar arrangement with a second property?
We will lease the structure from the owner and run it as if it were an extended part of our B&B and be completely responsible for all aspects of its operation. In return, we get a large percentage of the profits and the owner gets a tax write-off. This was his mother-in-law's house until she passed away earlier this year.
My question is about liability insurance. If we are leasing the property under the umbrella of our LLC, would our liability insurance we sufficient or would the owner of the property need to carry his own policy. I'm thinking the latter scenario is the most likely.
Do any of you have a similar arrangement with a second property?