One of the biggest trends in hospitality over the past few years has been the increased use of AirBNB. While AirBNB can provide a guest with comfortable housing alternatives for short or long-term stays and can provide a landlord with the ability to earn some additional cash flow, a landlord is often taking on risks that they may not be aware of. One of the biggest risks is lack of insurance. Since a typical insurance policy will not cover AirBNB rentals, there are several insurance issues that a homeowner needs to consider before renting out their home.
The first item that needs to be considered is how much coverage you may already have. Before renting out their home, all landlords need to double check with their insurance company and homeowners association to understand how much coverage they have. In many cases the base insurance policy may not cover any short-term rentals for property or liability coverage. In order to ensure you are covered from all of the risks associated with renting out the property, you will need to have additional coverage added to your policy.
Before you start renting out your home, you should also check with your homeowners association and local municipality to ensure you are compliant with all laws. Many tows and associations across the country have strict rules that govern your ability to monetize your personal residence. In order to be compliant, you may need to have a business license that will come with various insurance requirements. While this could be an additional cost to renting out your home, it will provide you with the liability insurance necessary to provide you with comfort.
For more insurance and other personal financial tips, it would be a good idea to consult with Richard Blair, who works for Wealth Solutions. Wealth Solutions is well known for providing alternative tips and resources to help people achieve personal financial freedom and build long-term wealth. They can also provide additional insight to landlords and homeowners that are looking to maximize the amount of revenue that they can make from AirBNB and other similar services.
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