There are thousands of pounds to be made from renting out your car parking space on websites like JustPark, parkonmydrive, YourParkingSpace.co.uk and spacehopper. Especially if you live in an inner city or popular destination. But before you rush to make some extra cash you might want to consider insuring yourself against the risks.
Check with your primary home insurer
If you already have buildings insurance cover, be sure to let your insurer know. Some insurers are happy to cover you for damage to your own property. However, there may be serious limitations if you rely on this cover alone and if you only have contents insurance you will not have cover at all. Just relying on your buildings cover alone could be risky.
Property used by parked vehicles may not be covered.
Most insurers prohibit you from renting out your parking space, so be aware that you may not be covered for any damage to your property. For example, if your property was damaged as a result of an accident or vandalism caused by your guest you may not be covered
In addition to this, be careful to let your insurer know how big your parking space is and how many renters are parking there. If several cars are parking there, your insurer could class you as running a commercial enterprise and decline to cover you at all. As a specialist insurance product designed to cover people renting out their car parking spaces, we can cover you if your primary insurer decides not to.
Inlet can cover you for up to £20,000 worth of damage to your parking buildings and up to £800,000 for damage to any connected buildings. There is also up to £5,000 to cover accidental or malicious damage caused by a Guest.
You could be liable for thousands of pounds.
Whilst it is possible some insurers may be happy to continue covering your property, many will exclude personal injury to guests renting out your parking space. If your guest is injured whilst on your property and you are personally responsible, you could be liable for thousands of pounds if a personal injury claim is made against you. Some parking websites ask guests to absolve hosts of any liability when booking a space. Bear in mind, however, that it is not entirely clear whether hosts would always be protected if an accident were to occur as this does not cover accidents caused to travelling passengers or third parties. With Inlet you will be covered for guest liability for up to £2 million per accident or series of accidents if an incident like this occurs.
If something goes wrong, you could be out of pocket for the rest of your life.
If a guest causes serious bodily injury to you whilst driving his car on your property, you may be not be able to get compensation for any losses incurred if you are not adequately insured. Personal injury claims are complex and you may not negotiate the best settlement if you go to a third-party insurer directly. Check with your primary insurer. If you don’t have cover you could pay dearly. Inlet will cover you for legal costs of up to £50,000 to pursue damages if you are injured or killed as the result of an accident with a guest.
Your guests may be unable to vacate your property.
Fancy footing the bill if your guest’s vehicle breaks down on your property? You could be stuck with a broken-down vehicle on your drive if your guest does not have breakdown cover and is not able to move quickly. This could cause issues if you have new guests arriving soon. Inlet’s vehicle assistance cover offers a vehicle recovery service that can tow a guest vehicle to the nearest local garage within 50 miles of your insured property.
You could be targeted by the taxman.
Don’t forget to tell HMRC if you are renting out your car parking space as income derived from this is taxable. Be aware that you may be liable for any costs incurred if you are investigated by them. If you are the subject of an investigation as a result of hosting activity, we can cover you for the costs of an accountant in your defence against HMRC.
Consider taking out specialist insurance.
Consider your parking space as an investment. If don’t think you’re fully covered, Inlet offers specialist insurance that can meet your needs and protect your asset.