How Can I Prepare My Home for Winter?October 25, 2019
Protect Your Investment with AirBNB Insurance
Why You Should Strongly Consider Investing in AirBNB Insurance Protection
In the past decade, AirBNB’s popularity has exploded. From being an obscure start-up based in California to becoming the defacto largest provider of non-hotel accommodations around the world, AirBNB represents a success story for the company. For individual homeowners and property managers, however, AirBNB represents a tremendous opportunity. People around the world have cultivated living spaces in their own homes and created separate rental units to welcome visitors from other provinces, countries, and continents. Across Canada, you can find thousands upon thousands of people who list rooms for rent, as well as hostels and hotels who have partnered with the company to advertise to savvy globetrotters.
As with all things, however, it is not always a one-way road to profit. Many potential hazards can afflict the unwary AirBNB host. Each of these can cost significant amounts of money, turning what should have been a profitable revenue stream into a timewasting money sink. Fortunately, Guild Insurance Brokers & HMS Insurance Agencies have assembled the perfect solution for those who own property and want to open themselves up to AirBNB opportunities without taking on unnecessary risks: AirBNB Insurance.
The Potential Risks of Operating without Insurance
Before we address how this insurance works, it’s important to understand what the risks are. These risks generally fall within two categories:
AirBNB enables you to name your price for your rental units. At first, this looks like a great opportunity, as you can charge what you think is appropriate considering the risks of a short-term rental. However, AirBNB takes a percentage from each transaction, and market pressure may force you to lower your prices to the point that doesn’t cover the risk. If you encounter a tenant who significantly damages your property, you may be left with little recourse, considering that they will generally live far away and outside of your jurisdiction. In most cases, the damage will exceed the fee that the renter paid by a large margin.
On the other side of the coin, AirBNB has several policies that are designed to protect tenants. These policies can include refunding a part or entirety of their fee if the tenant claims that you failed to deliver on your promises. Unfortunately, AirBNB acts as the sole arbitrator of such disputes, meaning that you have little option for an appeal if the companydetermines that the tenant is due their money. As a result, you may find yourself losing revenue and having to operate at a loss despite having done nothing wrong.
How AirBNB Insurance Addresses These Risks
While AirBNB as a company doesn’t take exceptional measures to protect professional hosts, there are insurance products on the market that can assist you with this. If you own several houses or properties that you break down into units as a significant form of income, then you are the ideal candidate to benefit from AirBNB insurance protection. We’ve designed our insurance to protect your home from the same issues that may occur with other short-term rentals.
If you welcome a tenant to your home through AirBNB and they wind up causing significant damage, you can document the occurrence and collect the compensation that you’re due, just as you would for any other accident. Thus, you can still benefit from renting to travelers by eliminating the risk of losing money through unruly tenants and the potential damage that they cause. While we cannot overrule AirBNB’s decisions regarding tenant claims, we insure your property so that your assets remain intact or that you receive the money necessary to repair whatever damage has occurred.
The Best Sources for Cost-effective Insurance
Considering how novel AirBNB insurance is as a product, there are relatively few providers of this service. Guild Insurance Brokers & HMS Insurance Agencies are pioneering the best ways to protect commercial AirBNB hosts from the risks associated with running AirBNB listings. We approach this new branch of insurance with the same dedication that we have always approached insuring our clients. As you decide where to seek financial protection, consider the following facts:
Is loyal to our clients and committed to understanding their situation. By putting your concerns first, our team can create tailor-made insurance packages that address your unique needs for protection.
Our products should synergise with each other to provide comprehensive protection for our clients. Thus, we can work with you to build AirBNB insurance into an overall business insurance bundle that saves you money.
Is tied to the community in which we began. Every time we work with a new client, we strengthen those bonds to the local community and take the opportunity to enrich the economy around us.
We will work to provide the best possible service to meet your specific needs. As we do so, you’ll know that we appreciate your business and genuinely treat you like family. Contact us to learn more about the ways we can assist you through tailor-made AirBNB insurance.