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Boarding And Rooming House Insurance Policy Information

Boarding And Rooming House Insurance. A boarding house is an establishment in which lodgers can rent rooms - sometimes only for a few nights, but often long-term - and make use of shared amenities within the property, including kitchens and bathrooms.

Boarding and rooming houses provide furnished lodging or living quarters to guests consisting of a private bedroom with communal bath, laundering, and eating facilities. There may be common areas for guests to congregate, such as a living room, dining room, backyard, or porch.

Rooms may be rented on a short-term or long-term basis. One or more meals may be provided at an additional charge. Some boarding and rooming houses offer shared rooms.

The patrons of boarding and rooming facilities are often college students, low-income boarders, social organizations providing facilities for mentally and physically challenged persons, or halfway-house and shelter residents. Limited recreational facilities may be available.

In a boarding house, meals are provided to the lodgers, while a rooming house would not include meals. In both cases, four or more rooms typically have to be rented out for the establishment to be considered a boarding or rooming house.

Not only do boarding and rooming houses offer budget-friendly housing to single people, owning and operating a boarding or rooming house can also be both a profitable endeavor and one that provides a fairly predictable, stable, income.

Those who own and operate boarding houses or rooming houses should, however, consider the many risks these businesses face. To protect themselves, they require excellent insurance. What types of boarding and rooming house insurance coverage are needed? Read on to discover more.

Boarding and rooming house insurance protects your lodging facility from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked roooming and boarding house insurance questions:

• What Is Boarding And Rooming House Insurance?
• How Much Does Boarding And Rooming House Insurance Cost?
• Why Do Boarding And Rooming Houses Need Insurance?
• What Type Of Insurance Do Boarding And Rooming Houses Need?
• What Does Boarding And Rooming House Insurance Cover & Pay For?

Why Do Boarding And Rooming Houses Need Insurance?

Boarding and rooming houses should carry adequate insurance for the simple reason that they are, like any other business, vulnerable to a number of hazards.

Both universal and industry-specific risks should be evaluated, since, in the event that a boarding or rooming house were to fall victim to a major peril, the expenses can easily become so overwhelming that they could lead to bankruptcy.

Your facility could suffer extensive damage as a result of an act of nature, like a wildfire, severe storm, or earthquake. Theft and vandalism are two further threats, and accidents, malfunctions, or careless mistakes on the part of one of your lodgers could also lead to serious property damage.

In these cases, the owners of boarding or rooming houses do not only face exorbitant repair or replacement costs, but they may also be forced to temporarily close their facility, thereby losing revenue.

Other risks you should not lose sight of if you own a boarding or rooming house include the possibility that an employee or a lodger is injured on your property, and the possibility that a third party files a lawsuit.

Because it is impossible to predict when disaster will strike, it is crucial to protect yourself from devastating financial consequences by making sure you have the right set of boarding and rooming house insurance policies on your side.

When a boarding or rooming house is adequately insured, any peril becomes easier to manage.

Boarding And Rooming House's Risks & Exposures

Premises liability exposure is high due to the number of boarders and visitors. The operation should meet all life safety codes to assure guest safety. To prevent trips, slips, and falls, the boarding house must be well maintained, with floor covering in good condition. The number of exits must be sufficient and well marked, with backup lighting in case of power failure.

Steps should have handrails, be well-lighted, marked, and in good repair. Balconies should be regularly inspected and maintained.

Rooms should be treated to prevent pest infestations such as bedbugs.

Sidewalks and driveways should be free from defects and cleared of ice and snow in inclement weather. Locks should be regularly changed to prevent unauthorized access.

Lead paint should be contained. Personal injury exposures include allegations of assault, discrimination, false arrest, invasion of privacy, wrongful detention, and wrongful eviction.

Products liability exposures can be high if the boarding house serves meals. Employees should be trained in the proper handling of consumables to prevent contamination, foreign objects in food, food poisoning, or the spread of transmissible diseases. Posting lists of ingredients can prevent allergic reactions from food and beverages.

Workers compensation exposure is moderate. Cleaning and maintenance operations can cause workers to experience lung, eye or skin irritations and reactions. Slips and falls, back injury, hernias, sprains and strains from lifting and working at awkward positions are common.

Food preparation operations can result in cuts, scrapes, and burns. Interaction with guests may involve situations that could produce injuries, such as assault. Employees should be trained in dealing with rowdy guests. Animals owned by guests can bite, scratch, or kick workers.

Property exposures can be high, as most boarding houses have been converted from older homes to their current occupancy. Conversions should be handled by professionals with appropriate permits and licenses obtained. Electrical wiring, plumbing, cooling, and heating systems must be updated to current code.

The age, condition, size, repair, and roof of the boarding house affect the potential for loss as damages must be repaired to match the rest of the structure. If there is commercial cooking, the kitchen should be upgraded to meet NFPA requirements. Cooking should be restricted to the central eating area only.

Smoking and the use of candles in guests' rooms should be prohibited. Hard-wired smoke detectors should be installed in all guest rooms and common areas. Regular inspections should be made of the rooms to verify that rules are followed.

Business income may be high as there may not be backup facilities available to the owner.

Inland marine exposure is limited to accounts receivable if the boarding house bills for services, computers, and valuable papers and records for guest and mortgage information. Duplicates of all data should be kept off site for easy restoration. There may be contractors' equipment for maintenance, repairs, and lawn care.

Crime exposure is from employee dishonesty and theft of money and securities. References and background checks should be conducted on all employees. Monetary transactions must be controlled through the use of receipts and regular monitoring.

Guest property coverage provides protection for guests' property from theft by employees, other guests, or trespassers. Access to guest rooms must be limited to those authorized to do so.

Business auto exposure may be limited to hired non-owned liability for employees running errands. If there are owned vehicles, such as those used to service units, any driver should have a valid driver's license and an acceptable MVR.

Vehicles must be maintained and records kept in a central location. If guests are transported, the exposure increases.

What Does Boarding And Rooming House Insurance Cover & Pay For?

Boarding and rooming houses can face a variety of risks that could lead to lawsuits. Some common reasons for lawsuits include:

Personal injury claims: Tenants or visitors may be injured on the property due to slips, falls, or other accidents. General liability insurance can provide coverage for medical expenses and other damages resulting from a tenant or visitor's injuries.

Property damage claims: Tenants or visitors may damage property, such as by breaking a window or damaging a door. Property insurance can cover the cost of repairs or replacement for damages caused by tenants or visitors.

Discrimination claims: Owners or landlords may face lawsuits for discrimination based on race, gender, age, disability, or other protected characteristics. Employment practices liability insurance (EPLI) can provide coverage for legal expenses and damages related to discrimination claims.

Breach of contract claims: Tenants may sue for breach of contract if the landlord fails to meet their obligations, such as maintaining the property or providing utilities. Commercial general liability insurance may cover breach of contract claims if they arise from property damage or personal injury claims.

Negligent security claims: Owners or landlords may be held liable if a tenant or visitor is harmed due to inadequate security measures. Commercial property insurance may cover damages and legal expenses related to negligent security claims.

In each of these examples, insurance can help boarding and rooming houses pay for legal fees, settlement costs, or damages incurred as a result of a lawsuit. However, it's important to note that the specific coverage and limits of liability will depend on the terms of the insurance policy, so it's important for boarding and rooming house owners to carefully review their coverage and consult with their insurance provider to ensure they have adequate protection.

Commercial Insurance And Business Industry Classification

• SIC CODE: 7021 Rooming And Boarding Houses
• NAICS CODE: 721310 Rooming and Boarding Houses, Dormitories, and Workers' Camps
• Suggested Workers Compensation Code(s): 9052 Hotel - All Other Employees & Salespersons, Drivers, 9058 Hotel - Restaurant Employees

Description for 7021: Rooming And Boarding Houses

Division I: Services | Major Group 70: Hotels, Rooming Houses, Camps, And Other Lodging Places | Industry Group 702: Rooming And Boarding Houses

7021 Rooming And Boarding Houses: Establishments primarily engaged in renting rooms, with or without board, on a fee basis. Rental of apartments, apartment hotels, and other housing units are classified in Real Estate, Industry Group 651. Rooming and boarding houses operated by membership organizations for their members only are classified in Industry 7041. Homes for the aged, for children, and for the handicapped that also provide additional services, other than nursing care, are classified in Industry 8361, and homes that provide nursing care are classified in Industry Group 805.

• Boarding houses, except organization
• Dormitories, commercially operated
• Lodging houses, except organization
• Rental of furnished rooms
• Rooming houses, except organization

Boarding And Rooming House Insurance - The Bottom Line

To protect your facility, employees and the people you host, having the right boarding and rooming house insurance coverage is important. To see the options available to you, how much coverage you should have in and the cost - speak to a reputable commercial insurance broker.

Additional Resources For Lodging Places Insurance

Find out what types of business insurance that hotels, motels and other lodging places should have to protect their varied operations.

• Bed & Breakfast
• Boarding & Rooming Houses
• Fraternity Houses
• Hostels
• Hotel Motel
• Sorority Houses
• Specialty Hotels And Motels

The hotels, motels, and other lodging places industry is a highly competitive and fast-paced industry, with businesses constantly striving to attract and retain customers. This means that hotels, motels, and other lodging places need to be prepared for any potential risks or challenges that may arise. One way to do this is by obtaining business insurance, which can provide protection against a range of different risks.

One of the main reasons why the hotels, motels, and other lodging places industry needs insurance is to protect against property damage. These businesses rely on their physical assets to generate revenue, so any damage to these assets can have serious financial consequences. Business insurance can provide coverage for damages caused by natural disasters, fires, and other incidents, helping hotels, motels, and other lodging places to repair or replace damaged assets.

Another reason why the hotels, motels, and other lodging places industry needs insurance is to protect against liability claims. These businesses are responsible for the safety and well-being of their guests, so any incidents or accidents that occur on their premises could result in liability claims. Commercial insurance can provide coverage for these types of claims, helping hotels, motels, and other lodging places to cover the costs of legal fees and settlement payments.

Finally, the hotels, motels, and other lodging places industry needs commercial insurance to protect against loss of income. These businesses rely on a steady stream of revenue to stay afloat, and any disruptions to this revenue could have serious financial consequences. Insurance can provide coverage for loss of income caused by unforeseen events, such as natural disasters or pandemics, helping hotels, motels, and other lodging places to stay afloat during difficult times.

Overall, the hotels, motels, and other lodging places industry needs insurance to protect against a range of different risks and challenges. By obtaining the right coverage, these businesses can ensure that they are prepared for any potential setbacks and can continue to thrive in a highly competitive industry.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Equipment Breakdown, Accounts Receivable, Computers, Valuable Papers and Records, Employee Dishonesty, Guests Property, Money and Securities, General Liability, Employee Benefits, Liquor Liability, Umbrella, Business Auto Liability and Physical Damage, Hired and Non-Owned Auto & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Flood, Spoilage, Bailees Customers, Commercial Articles Floater, Contractors Equipment, Fine Arts, Signs, Special Floater, Computer Fraud, Forgery, Cyber Liability, Employment-related Practices, Garagekeepers And Stop Gap Liability.