Making a little extra money is easy when you own a home, have spare rooms, and are willing to work with an online service such as Airbnb. Homeowners can rent out a room for whatever dollar amount they wish. $50 a night can turn into a solid sum when one or more rooms is consistently rented out during the week.
Do not assume that this type of deal comes with no considerations. On the Wealth Solutions blog, a warning is given to those who think they can ignore the insurance issues associated with renting out a room.
Wealth Solutions is run by Richard Blair, and he knows quite a bit about wealth management and protecting one’s assets. Blair founded Wealth Solutions to help people in need of financial advice. The basic advice offered on this blog entry definitely could help people avoid getting into serious trouble renting out a room.
Homeowners insurance can cover a wide range of different areas of liability. Does a policy cover commercial activity though? Anyone who chooses to rent out a room positively must be sure that any disaster scenarios caused by or involving a tenant are covered under the policy. If not, then a claim may be denied and a homeowner could be is serious, massive financial jeopardy. Imagine if the renter is hurt or hurts someone leading to $100,000 in liability costs. With no insurance, a homeowner could end up losing the home.
Taking steps to make sure the right insurance policy in place is strongly suggested to anyone with designs on using the property as a short-term rental. A quick call to the insurance provider could set the process of adjusting the policy in motion. The increase in the amount of the policy might not even end up being all that much. In the end, the proper amount of coverage ends up being procured and the financial security of the home is preserved.
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