While many people have already started to jump into the frenzy that is renting housing temporarily with AirBnb, you have to recall that there are other implications of using a new system. One such implication is the insurance issue in general, and even though you may not give it much thought it could still have major financial ramifications if you don’t plan ahead.
When it actually comes to planning ahead it is extremely important to not only think through the long term, but also double check your immediate facts as well. Someone like Richard Blair has almost built his career on having common sense and double checking of facts mixed in together with specific financial advice. For the cases involving insurance or legal advice, you just need to take the time and use logic to think through the scenario.
The biggest thing that homeowners need to fear when using Airbnb is the fact that personal homeowners insurance typically only covers personal actions. In other words, the moment you start to do something for profit you are considered a business, and then your personal insurance might not cover any potential claims or losses. If you consider the potential ramifications of renting out your home for a few extra bucks, but you also consider how much extra it could potential cost you in damage, theft, or even worse, then you can see why this is a very risky situation in the long run.
Insurance is a very risky item simply because an insurance company only wants to take on the risks that they know and understand. Keep in mind that when you pay a premium for insurance, you are technically selling off your risk and the insurance company is bearing it all. The key is when the insurance company can’t adequately rate and underwrite the risks that they are buying then they might over or undercharge for the insurance policy. It is in that scenario that the entire situation gets a bit dicey.
When it comes to something like Airbnb there is absolutely a significant amount of opportunity for anyone to be able to make some cash. However, when Richard Blair points out some top financial information, it might be time to listen. Just because individuals have a great idea in general or in theory doesn’t mean it will make sense in practice. That is exactly the reason the people have been turning to Richard Blair for financial (and critical thinking) assistance.
Learn more: http://brokercheck.finra.org/individual/2256412