Insights, Please

[jraybaby]

I am in the planning stages of starting a home child care business, but my landlord (who is also my mother in law) is nervous about insurance. Actually she is nervous about everything! I tried to explain to her that I will take out liability insurance and this will cover me if anything were to happen. She thinks that since she is the homeowner, she will be liable. Can anyone give me some insight into how insurance works so that I can try to put her at ease? I have to get her permission to do child care, since it's her home. I have taught public school for 10 years and I have two children. I have managed to keep all of my students and my children safe, but MIL keeps saying things like, "the house isn't set up for children" and "there isn't a fence in the backyard, that's scary". It's really starting to bug me! What does she think I'm going to do...let them run wild in the yard, stick therir fingers in the outlets and jump from the top of the stairs?:confused:

[MarinaVanessa]

Can anyone give me some insight into how insurance works so that I can try to put her at ease?

Liability insurance for renters works like this. You'll need to get renters insurance from an agency and then add liability insurance to it. I don't know what the rates are near you but I use State Farm and I know that the renter's insurance is under $20 a month and my rider (addition to my homeowner's insurance) for my liability insurance is only an extra $75 a year for $300,000 so it really isn't expensive. If something were to happen the insurance pays up to $300,000. The homeowner has nothing to do with it even if you had no liability insurance. The difference is that if something were to happen and you didn't have insurance you would be sued personally and you would owe whatever that amount was. You can always have the families you care for sign a waiver stating that if something were to happen they could not sue the landlord just to put her more at ease.

HINT: Take her with you when you go into an insurance agency to get quoted and let her be involved in the process of learning about how it works so that it comes from a certified agent and not just from you.

"the house isn't set up for children" and "there isn't a fence in the backyard, that's scary".

Tell her that you plan on babyproofing the home. You can install outlet covers, safety gates at the top and bottom of the stairs and I would really think about installing a fence (though it is is not always required in all states or counties).

You can also start your contract and handbook now of your policies so that she can see that you are taking it serious and you won't allow families to demolish the home. She'll feel a lot better.

[TGT09]

I sort of had the same issue with my Mom (She owns the house). She was really worried about all the liabilities too. After I explained to her and she saw how thorough I was being, she stopped freaking out!