AirBnB is growing in popularity around the country. This website allows people to rent all or part of a person’s home for short term use, rather than getting a hotel room. Often this allows travelers to get a better feel for the city they are visiting and saves them hotel costs. Many believe the benefits for homeowners are obvious. Homeowners earn some extra money, and they get to meet new and interesting people, but a smart financial planner always considers the risks as well. Opening up your home to AirBnB guests will make you some extra money, but you will be exposed to several risks. Learn more: http://hackronym.com/wealth-solutions-insurance-and-other-considerations-when-renting-on-airbnb/
When you sign up for AirBnB you are opening up your home to total strangers. You do not know what they might do. Unfortunately, you are liable for their actions while they are in your home. Everything from criminal activity to plain negligence could come back to harm your financial security. Tenants may even refuse to pay, leaving you with a huge mess and no way to recover your losses. You probably expect your homeowners’ insurance to intervene, unfortunately, that opens up another major can of worms.
Homeowners’ insurance policies are a great way to protect yourself and your family, but they often fall short. Most policies do not cover short-term rentals, including AirBnB guests. You probably will be held personally responsible for any actions taken by your guests, and those costs can add up over time. AirBnB has dealt with several high-profile cases already, so to protect themselves they started offering some level of secondary coverage. Unfortunately, this secondary coverage only kicks in once you’ve exhausted your resources. Basically, AirBnB’s coverage only protects them and you are left holding an empty bag.
Making extra money always feels right, especially in an incredibly tight economy, but using AirBnB to make money is definitely the wrong move. If you are looking to build your wealth, then you need a smart financial planner on your side.
Richard Blair has been in the wealth management game for many years, and he has become an expert on building wealth. His Wealth Solutions team provides all the advice you need to get your investments on the right track. They offer everything from adviser services to information on particular funds.
Now is the perfect time to start building your wealth, but you have to do it the right way. Contact Wealth Solutions today.
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