The share-economy is revolutionizing the way money is made, especially if you have real estate. Air-BnB, for example, is giving property owners an opportunity to rent out their homes to visiting strangers for a few days. Many are considering this as an extra stream of income that can be helpful, especially in this economy. But Richard Dwayne Blair has some words of caution for Air-Bnb hosts regarding home insurance.
Who Is Richard Dwayne Blair?
Richard Dwayne Blair is the sole owner of Wealth Solutions, Inc. Blair is also an executive in the RIA. Blair has brought his expertise and innovative approach to finances to several companies throughout his 22-year long career. A career that has seen immense success through companies like United Global Securities, Inc.
Blair’s focus for 22 years has been on securities. But his RIA or Wealth Solutions, Inc. has been the highlight of his career. It is based in Austin, Texas and is worth 55M though that number seems to be growing. This is the kind of experience that has caused him to urge caution regarding Air-BnB.
What Does Blair Think About Insurance and Air-Bnb
Blair started to notice just how intricate this sprawling new business could be and how much homeowners are unaware of certain issues that could arise from their small side business. Blair warns that most homeowner’s insurance policies simply will not cover any claim made because of a paid guest or may even cancel a policy if they were not informed.
One of the most important steps that should be taken is informing the homeowner’s insurance company about your dealings with Air-BnB. Perhaps, there is something that could be tweaked or added to your insurance policy to cover any mishaps. This conversation should take place before one starts the Air-BnB business because most homeowner’s insurance policies consider the activity a commercial activity. Commercial activities are mostly excluded from most insurance policy.
Sure, Air-BnB and other similar companies offer some insurance, but Blair warns that it might not be enough.
He pointed out some of the dangers that a homeowner faces when renting his or her property out, which are the following:
- Injuries that you or your guest may have
- Damage that can be made to the property
- Illegal activity that might occur
- Guest might refuse to pay
Of course, these do not cover all the possible costs, but it is wise to ensure that the homeowner’s insurance reevaluates the policy to accommodate this new stream of income.