Tag Archives: home ownership

Is Homeowner’s Insurance Enough if You Have Airbnb Guests Coming In?

Homeowners purchase homeowner’s insurance as a term in their mortgage contract. The insurance protects the dwelling against covered events and provides funds to pay for repairs or replace the property. If the property owner wants to operate a small business at home, the insurance may provide coverage for limited liabilities. However, homeowner’s insurance may not be enough for a property owner that wants to operate an Airbnb at their home. 

Understanding Homeowners Insurance

Homeowner’s insurance applies to a residential property in which the owner lives, and it is not the same as commercial property insurance. While the homeowner’s insurance will provide coverage for the dwelling, personal belongings, and certain liabilities. It will not present adequate coverage for a business, and a homeowner who wants to operate an Airbnb in their home won’t get the same level of coverage for guests as they would a friend or family member. 

Once they choose to operate a business inside their home, the property owner could face more serious liabilities. The homeowner’s insurance coverage provides liability coverage, but it is designed to manage accidents such as dog bites, slip and fall accidents, and protection for certain service providers who complete services.

If a guest stays in the property as a client of Airbnb, they could file a legal claim against the company and not the homeowner. Homeowners can review more about homeowner’s insurance and limitations by contacting Roger Butler Insurance now. 

General Liability Insurance Requirements

By operating a business from home, the homeowner will need more extensive liability coverage. If a guest becomes injured while paying for a service, they can sue the company. When suing a company, different rules and laws apply.

It’s not the same as a visitor coming to see the homeowner with permission, and they are staying for a limited amount of time. The victim wouldn’t sue the homeowner for injuries that happened at a business. General liability covers premises liabilities related to operating a business, and this coverage could protect the property owners against serious financial losses. 

Property Damage Caused by a Guests

The homeowner couldn’t get coverage for property damage caused by an Airbnb guest through homeowner’s insurance. The homeowner’s insurance policies have strict limitations. The property damage must happen because of a covered event. This means that a fire, natural disaster, or criminal act must cause the damage. 

The property owner will have to start a commercial property insurance policy since they are using their home as a business. The policies provide coverage for property damage caused by clients. An Airbnb could sustain property damage because of guests and reckless actions. If the property owner doesn’t get the insurance policy, they will have to pay for the property damage out of pocket. 

Host Protection Insurance

Host protection insurance provides liability coverage and protection for property damage. The value of the policy defines how much coverage the homeowner gets from the policy. The total number of guests they allow into the home may play a role in how much coverage they need. 

Homeowners who want to operate an Airbnb from their home need additional insurance policies beyond their homeowner’s insurance. The homeowner’s insurance will not provide coverage for property damage caused by guests, and the liability coverage is not high enough for a variety of guests staying at the home. Since it is a business, the homeowner must get more policies to protect their home and themselves against serious liabilities.

5 Nifty Ways to Improve the Value of Your Home

Real estate remains one of the most reliable financial investments, and when you own a home and you’ve built up some equity in it, you have some opportunities to leverage that. Equity gives you the leverage to actually put more value in your home in several ways. Whether you’re planning on selling your home, you want to maximize your home’s potential to earn more income, or you want to update it to keep in line with home values in your locale, there are many ways to boost your home’s appeal and get a major return-on-investment. What are some of the most valuable upgrades you can do on your home? Here’s a list of projects that can make your home more valuable today. 

Full Remodel 

Nothing reduces the value of a property like dated features. If you have an older home, a remodel is one of the best ways to add more value to it. Some homes only require changes to the kitchens and bathrooms, but many other homes would benefit from a complete overhaul. This includes replacing old carpet or vinyl flooring with hardwood or even high quality laminate floors; removing old windows and putting in new energy efficient ones, and updating the window and window treatments by installing new curtain rods and beautiful curtains that are more modern. These kinds of changes make a huge impact on the look of the home and how much money it’s going to be worth. If you’re planning on selling your home, it’s also worth considering an update to the home’s exterior to improve your curb appeal. 

Income Opportunities 

One of the most common ways to add value to your home, and even put more money in your pocket is to create an income-earning opportunity with your home. What some homeowners have done is divide up and add to their property another dwelling with a separate entrance. This creates the opportunity to get a tenant into the second space, allowing you to earn money and even reduce your mortgage payments. One way people do this is to finish off their basement and turn it into some type of separate accommodation. If you already have the space and it’s not in use, why not make it something more valuable. If you get the right permits, and do the build without breaking the bank, this is a very smart way to get more out of your home. Here’s our list of real estate blogs that go into more depth about renting out portions of your home.

Roof Upgrade 

Did you know that upgrading your roof is one of the best ways to add thousands in the value of your home? If your roof has seen better days, getting a replacement roof immediately boosts how much it’s worth to the real estate market. This is especially great if you’re selling your home. A new roof gives new owners the peace of mind of knowing it won’t need to be replaced for a long time, and that’s very valuable. 

Home Office 

2020 has changed a lot about our lives, in particular, how we work. With more and more people working from home on a permanent basis, houses with dedicated workspaces are becoming more attractive. Many people are also looking for spaces that can facilitate full-time homeschooling for their children. Even if you don’t intend to sell your home, adding some sort of office component can be a gamechanger for your household. More people are going to want workspaces that are more intentional and less makeshift, and it’s a good idea to add that to your house. Whether it’s an addition or remodeling a room with office equipment, your home can gain value by preparing for a huge shift in job culture. 

Adding value to your home is one of the smartest things you can do. By making the right choices on upgrades, you can make your home more appealing to future buyers, or a better place for you and your family to live. Many homeowners have found a way to boost the long-term value of their home by creating a stream of income with it. This is a powerful way to get more out of your home, reduce your own mortgage payment and further protect yourself from financial volatility. If you’re unsure of how to proceed, research the property listing in your area to see what’s selling. You can also sit down with a knowledgeable local real estate agent to get an idea of what would be the best way to make your home more valuable and appealing to the market. The expertise of someone who knows the area will be very helpful with this undertaking.

5 Benefits an HOA Provides When You Have Children

Homeowners’ associations, otherwise known as HOAs can be very beneficial when you have children. HOAs are often criticized by people who are not fond of having an organization dictating what they can or cannot do with their personal property, and are wary of living under set bylaws that are accompanied by fines for any violations. HOAs are not for everybody, but such organizations have many positives, especially when you have children. Here are 5 benefits an HOA provides when you have children.

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