Short Term Rental on popular river, liability questions

[Nick Frank]

Hello BP community, this is my first post in the forums and wanted to say thanks to any replies in advance! I just bought my first short term rental investment property on a popular river for kayaking and camping in my state. I am currently planning to rent out a tiny cabin on the property this summer. In the fall/winter I plan to build several more small cabins on the property. First, I wanted to see if it would be better to transfer the property into an LLC immediately or if it's ok to wait a year and get umbrella coverage and short term rental coverage for the property for the time being until I build? Secondly, I wanted to make kayaks and rafts available to the guests if possible because I have a launch/landing point on my property and want to take advantage of the public drop off points in the area. With the kayaks and rafts being an additional liability, I was wondering if there is anything else I need to do to protect my assets if something were to happen?

[Collin Hays]

So I own several cabins on rivers - fly fishing/floating/swimming deals.  These are good renters - God isn't making any more rivers.  I suspect you will be in the same shape.

That being said, I have never provided tubes, rafts, and kayaks.  People can and do drown, and likely have, in the very river you are next to.  If they choose to go to Walmart and pick up their own supplies and take that risk, I've got no problem with it.  But if I am supplying the equipment, then suddenly I am a quasi-sponsor/promoter of the activity(ies), and I don't want that on my resume when someone drowns and the lawsuits start flying.

My rental agreement is also very specific about the inherent risks associated with being near the water, that children can drown in very shallow water, they are to be supervised at all times by adults who know how to swim, and the guest holds the homeowner harmless from any and all accidents/injuries/fatalities resulting from the water.

Water is serious business.  

As a side note, I have allowed Proper Insurance to quote several of my properties in the last year, and I've found their coverages to be inferior, and their prices to be exorbitant.  Quite contrary to their name.