Insurance on an off-site property

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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?
 

MTLLodge

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I would think that the "land lord" would have insurance and that you would have the "business" insurance. That is how we have it set up. Check with your insurance company, that is a must. Best of luck!
 

One Day

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I take it from my experience......I am viewing it from the angle of contractor and subcontractor.
You'd both have to have insurance......though I would think yours would be an extension of your business liability.
 

Copperhead

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Some laws vary state by state so it is best to handle this straight with your insurance agent. It would be important for the owner to do the same with his agent as well.
 
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