The homeowners of today are exploiting an opportunity driven by Airbnb and other companies to rent part or entire house and make quick and easy cash in return. Many homeowners have joined the new trend in the hotel industry, and they have also contributed to lower prices for hotels rooms in many places across the world. However, the concern is that many of these amateurs’ hoteliers fail to recognize the number of unexpected problems which may arise when they host travelers. For instance, these temporary renters can damage parts of the property that your insurance may not cover. The problem is that the homeowner has the ultimate legal and financial issues that were not anticipated.
Experts in insurance will advise you to consider all the elements involved before you make the final decision to rent your property through Airbnb and other organizations. Some issues to consider include insurance coverage. The regular homeowner’s insurance policies do not cover short-term rentals. If you are planning to rent part or your entire home, it is important to know that you will be personally liable for any damages and expenses incurred by your paid guests.
The second important point is to understand the various risks that could potentially affect you or your neighbors’ property when you engage is short-term rentals. For instance, short-term tenants can potentially damage your property, you will be liable for any injuries affecting the short-term tenants, theft, illegal activities, and you may also be prone to lawsuits on behalf of the tenants’ actions. Some companies such as Airbnb will tell you that you will be compensated for any damages caused by their clients. It is important to evaluate the conditions placed by the hosting company to understand how to claim for these damages.
It is understandable that many homeowners overlook insurance and damages because they believe someone is taking care of the problem. It is only when the property is a mess, or a problem has occurred that they realize they are in a big problem. If you have no time to evaluate these issues, there are insurance professionals who can help you figure out what to do before you engage the short-term rentals. One such professional is Richard Blair, the CEO and founder of Wealth Solutions, Inc. Mr. Blair is specialized in helping clients review their best insurance options and offer advice that suits your needs. He has 22 years of experience is insurance and as a financial advisor.
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