For much of the United States, The Napa Region of California is generally regarded as the wine capital of the United States, and for good reason. The area is teeming with various wineries, making it a primary destination for tourists from around the world. Naturally, there has been an influx in properties being made available for short term rentals in that region. Napa may soon be in for some serious competition from an unsuspecting source in Texas.
That’s right, Texas is home to burgeoning vineyard country with wine that is said to rival what can be produced in California’s vaunted Napa Valley. This is Hill Country in Texas. While Texas is home to over 200 wineries, Hill Country is home to 50 of them. The area has often been regarded as the “New Napa” due to its similar climate and scenery, and like Napa, has seen an influx of homes being made available for short-term rental. It is not uncommon for rental properties in wine county to offer wine to their guest in some capacity, whether it be a complementary bottle, or the “take a bottle, leave a bottle” system. In fact, it’s almost expected.
While the practice has been a staple for many in the hospitality industry for these regions, insurance has a different take on the matter. To insurance companies, the provision and consumption of alcohol lays the groundwork for what they see as a very expensive liability risk. Simply put, the availability of a controlled substance poses a huge liability risk for both the host and the insurance company, and to that end, many companies have specific exclusions for the provision and subsequent consumption of alcohol.
Proper Insurance and Lloyd’s of London elected to remove the liquor liability exclusion from their policy. This means there is no gray area when it comes to liquor claims. Proper’s is the only policy in the Nation to entirely remove this exclusion, unless you are required to have a license to furnish or sell in your county. Get a quote today, or call 888-631-6680 to speak to an agent.
For properties in wine country, making sure you have coverage for this is imperative in protecting you and your business. When shopping for insurance for your short-term rentals, one of your first questions should be what their liquor liability policy is. If a company cannot provide you with a written statement, indicating you can supply guests with a complimentary bottle of wine, you should assume that there is no coverage.
You may ask yourself why such coverage would be necessary, seeing as most of your clients are calm and respectful. The answer lies in such lawsuits as this lawsuit in Louisiana, guests consuming alcohol injured themselves on a rental property and were able to sue the owners and operators for roughly $11 million. A single incident makes your premium entirely worth your while in pursuing this insurance. Make sure you check with your insurance provider and see if you are covered.