Insurance on rental trailer

Lilly001 · Jan 20, 2015

I have the oppertunity to purchase a trailer on a lot that adjoins my larger property. The issue is that the trailer is currently a rental and the seller has asked if I would honor the tenants lease that expires in June.
I have no interest in renting the trailer. I am concerned about my potential liability. Will I need a commercial insurance policy while it's rented? And then will I have to start a new non-commercial one when the renter leaves?
What other issues do I need to be aware of?
Or should I try to put off the sale until it's vacant?
Thanks.

1john4:4 · Jan 20, 2015

If you want to insure the trailer for property damage, you would get a dwelling fire policy. This policy also contains landlord liability and you can choose your limits of liability. If you are not interested in insuring the trailer itself, you can extend the liability limits from your homeowners policy to the rental.

shirttail · Jan 20, 2015

I'd make them buy the insurance to cover your trailer and your liability til the lease is up.......... write it into the contract for purchase. Make sure your listed as an additional named insured.

Will you own the land the trailer is on or will you be moving the home?
Who is going to get rent money if you buy it?

The Longhunter · Jan 20, 2015

Lilly001 said:
Or should I try to put off the sale until it's vacant?
Thanks.

Do an option to buy, with the closing date at the end of the lease, with a condition that the trailer be in the same condition as now w/o tenants.

If there is actually a written lease, you have to honor it anyway regardless of whether the current owner asks you to or not.

If you go with the option, have an attorney draw it up.

Lilly001 · Jan 21, 2015

Yes, I will purchase the property with the trailer.
It's a fortunate opportunity as my buddy, who's cabin I stay at when I'm up in Ga, has decided to sell his cabin. So I need a place to stay. And this trailer adjoins my property and has room for a sizable shop to be built.
I'm 90% on buying it. I realy just need to work out the details and try not to be caught missing something that will bite me later.
I'm not in a hurry but the seller is. I guess I need to find out how much covering my liability will cost and negotiate that into the deal.
Thanks guys, you brought up some issues and solutions I hadn't thought of.

Lilly001 · Jan 23, 2015

More info

I contacted the Ga Farm bureau about insurance. The agent said I could insure the trailer with the tenants for a few hundred a year with a 500,000 liability policy. Then, after they leave, I can combine it with my agg property and save about 1/3.
So the tenant thing might be doable.

The Longhunter · Jan 24, 2015

Lilly001 said:
I contacted the Ga Farm bureau about insurance. The agent said I could insure the trailer with the tenants for a few hundred a year with a 500,000 liability policy. Then, after they leave, I can combine it with my agg property and save about 1/3.
So the tenant thing might be doable.

The one thing you don't want to do is require them to have (or maintain) the insurance.

You want to obtain the insurance, and incorporate the cost of same into whatever arrangement you make with them.

T-N-T · Jan 24, 2015

I wouldnt put it off if the seller in the mood. If you lag on the deal you might be passed up and thus be sitting around grumbling about missed chances.

Lilly001 · Jan 31, 2015

Well I finaly was able to meet up with the seller and get a look inside. 3 dogs (2 puppies kept in the second bathroom) a cat and a large bird of some kind live inside. One dog lives under the trailer through a hole in the skirting. No floor covers, just painted plywood (plywood is good).
Needless to say I considered the hassle of cleaning it up and made an offer well below his asking price. Surprisingly he came back with a price well below his asking, but not quite down to my offer.
We will see if he gets back to me. I'm mixed if I realy want it now.

Insurance on rental trailer

Lilly001

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1john4:4

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shirttail

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The Longhunter

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Lilly001

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Lilly001

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The Longhunter

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T-N-T

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Lilly001

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