Insurance issues you must consider before renting your House through Airbnb

Airbnb provides a platform that transforms homeowners into amateur hoteliers. By renting out part of their homes, homeowners become minor players in the hospitality industry. Through Airbnb, homeowners are able to generate incomes that helps them pay off their mortgages.

Airbnb has become popular among homeowners. The prospects of making money by temporarily hosting travelers are attractive. However, it is important for homeowners to approach this venture cautiously. This is mainly because the venture is not yet fully covered by home insurers.

With the risk of incurring financial losses as a result of hosing temporary tenants, homeowners must weigh their options wisely. As a homeowner, you must be careful not engage in a venture that has higher running costs than the proceeds from it. Subsequently, it is recommended for homeowners to consult with a wealth management expert before renting out their homes to Airbnb.

In order to reap the benefits of renting out your home, it is important to consider all the issues that may subsequently emerge. Such issues include:

Risks involved
Renting out part of your house may expose you to additional risks on top of those covered by your insurance policy. To begin with, your temporary tenants may damage your house or destroy your neighbors’ properties. Such damages are often not covered by common home insurance policies.

Other than possible destruction of properties, tenants may engage in unlawful activities or refuse to meet their financial obligations. In such cases, your contract may involve several lawsuits that may prove costly.

Insurance Covers
Many of the incidents that result from temporary tenants are not covered by common home insurance policies. Subsequently, you may be required to repair your house in case your tenants damaged it or foot any hospital bills that may result from injuries sustained by your hosts during their stay.

How well are you protected against risks by rental firms such Airbnb?
Companies that enable homeowners to rent out their homes often provide secondary coverage. This coverage has a downside in that it leaves the homeowner’s resources exposed. It only covers the costs above what the homeowner’s resource can cover. This makes it crucial for homeowners to always engage professional insurance or wealth management experts before contracting rental companies.

Richard Dwayne Blair, the founder and owner of Wealth Solutions Inc., is among the most sought after asset management experts in the industry. His career in finance and financial services spans over 22 years. Considering his vast knowledge and experience in insurance and investment management, Blair is best placed to give you all the professional advice you may need when engaging firms such as Airbnb.

Blair is a graduate of University of Houston. He majored in finance and financial management, a field he pursued with passion culminating in the creation of Wealth Solutions Inc. in 1994. He is a certified and registered Estate and Trust Specialist and an advisor on investment among others.

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One comment

  • Taya Max
    November 11, 2017 - 7:30 am | Permalink

    this really applies to many people in the sense that there is the consideration for them to make realistic decision on how much they want to make. I think that with essay writing service reviews more can be done to boost the experience marketing that some businesses use to run. Now knowing this will give a clearer picture on the finances in business and will sort of prepare for the future.

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