Richard Blair on Short-Term Housing
More travelers than ever before are turning away from hotels and choosing to find accommodations in private homes or renting the entire home. For example, travelers can book a month long stay in the Beverly Hills mansion where President Kennedy spent his honeymoon or the largest apartment in central London. Most homes that are available to travelers, however, are much more modest. If you are thinking this is a way to earn additional money in your home, then you need to think of the risks before you take the time to list your site on popular sources including Airbnb, Booking, Flip Key and Roomorama.
Start by getting out your current policy and read the fine print or call your insurance agent. In most cases, you will find that your homeowner’s insurance does not cover short term leasing of your property. Many experts believe that before you ever rent your home you need to purchase commercial insurance to be covered against losses. Of course, this insurance comes at a higher fee.
Before you spend your time listing your home, make sure to check local ordinances. In many cases, you will find that you need to have your home inspected by the city, pay for a commercial license and pay additional taxes.
If you are still interested in renting your home, then consider the risks that you are opening yourself to before you proceed. A short list of possible risk include personal injuries, damage to the property, lawsuits, theft and loss of income if your lessee refuses to pay or does not show up.
Airbnb offers homeowners insurance through their site. This insurance only starts coverage after you have exhausted all your other means. Additionally, it only cover 1 million dollars for the primary residence and another million for personal liability. With juries often awarding huge amounts, this insurance is likely not to be enough.
If you have decided that letting others stay in your home is not the correct way to gain additional wealth, then contact Richard Blair in Austin, Texas. He will be glad to show you legitimate ways to build your net worth without opening yourself up to lawsuits.