Renting portions of a home on Airbnb has its problems that can be an inconvenience and unexpected for homeowners. Although it’s a fast way to earn additional income, renters who occupy spaces may cause damages, which isn’t covered in homeowners’ insurance policies. The final result may include legal ramifications and substantial financial losses. Richard Blair, founder of Wealth Solutions in Texas tells homeowners to consider the risks and issues involved in renting properties to temporary tenants. The three important issues he advises property owners to consider are risks, insurance coverage, and enough protection. http://hackronym.com/wealth-solutions-insurance-and-other-considerations-when-renting-on-airbnb/
Mr. Blair has confidence that considering those issues and obtaining commercial homeowners insurance will limit and/or eliminate those risks and issues. He placed risks at the top of the list of issues to consider before renting parts of owned properties. Tenants cause various risks, including property damages, theft, damage to neighbor’s properties, and the possibility of frivolous lawsuits. They may also cause financial problems by paying late, avoiding & refusal to make payments, and destroying property. Risks are important to consider, and only commercial homeowner’s insurance coverage provides the financial protection and peace of mind. http://www.wealthsolutionsria.com/p/services
Never assume traditional homeowner’s insurance coverage is enough protection. Homeowners who owns a tradition insurance policy must also purchase a commercial policy, as well. Insurance coverage is the second issue homeowners should consider when renting temporarily. Traditional homeowner’s insurance doesn’t cover home rentals to tenants. If a tenant causes problems and damages, that means the homeowner is liable for expenses for repairs and legal suits.
Homeowners who rent properties on Airbnb must take into account the site only offers a secondary coverage for home rental properties. It’s not enough protection and requires property owners to possess commercial coverage on the portion of house rented temporarily, on a consistent basis. Insurance coverage relieves the homeowner of financial distress in the event of issues and risks.
Before renting rooms and portions of homes, consult with an experienced Investment Advisor and reputable insurance company. Richard Blair has over 22 years of experience in the financial and investment industry. He founded Wealth Solution, a registered investment advisory firm, in 1994. Mr. Blair is a registered Investment Advisor and Certified Annuity Specialist in the State of Texas. He informs his clients and prospective clients of recent advice that can be used to make strategic investment decisions, such as temporary property rentals.