Liability Coverage for Lake Cabin
I’m wondering if it’s possible to obtain liability-only coverage for a lake cabin that was renovated without permits for its structure, electrical, or plumbing.
My father passed away last year and left a lake property to my sister and me. The property is actually a mobile home that he entirely remodeled into a cabin—though it was done without any permits. It’s currently valued at around $90,000.
I live across the country and don’t have any personal interest in the property, but it means a lot to my sister, who lives nearby. I don’t believe we could secure a full homeowners policy due to its condition, but I want to ensure that I’m not held liable if someone is injured on the property while I’m far away.
It’s understandable that you want to ensure you’re protected from potential liabilities associated with the lake cabin, especially considering the renovations done without permits. Here are some options and considerations for liability coverage:
Liability-Only Coverage: Some insurance companies may offer a liability-only policy for properties like yours, especially if renovations didn’t affect the structure’s overall integrity. However, finding insurers willing to provide coverage for properties with unpermitted work may be challenging. It’s essential to shop around and speak with multiple insurance agents to explore available options.
Umbrella Policy: Another option could be to purchase a personal umbrella policy that provides additional liability coverage on top of your homeowner’s insurance (if you decide to obtain any). This type of policy often covers incidents that happen on properties you own, offering an extra layer of protection.
Potential Risks: Keep in mind that even with liability coverage, there could be challenges if an incident occurs at the property. Insurers might investigate the circumstances surrounding the renovations and could deny coverage if they find the unpermitted work contributed to any negligence.
Legal Consultation: It may also be wise to consult with a real estate attorney. They can advise on potential liabilities associated with owning property that has unpermitted renovations and help you understand your risks as a co-owner.
Sister’s Involvement: Since your sister is living closer and may be using the cabin more frequently, it’s important for her to be informed about the liability risks as well. It might be beneficial for both of you to jointly discuss how to manage the property moving forward.
Ultimately, while finding liability-only coverage might be possible, it would be wise to approach this with caution and consider all possible legal implications.