The doubts about the depth of the wisdom of eternal oral wisdom of “sharing and sharing” mother got rest by the spiking of the shared economy.
From Airbnb to Zipcar, the ever-growing list of collaborating companies has almost the same opportunities for consumers and entrepreneurs. Regardless of the evolution of this market segment or the natural evolution of the mindset for on demand, for payment purposes only, peer-to-peer and shared economies await long-haul routes.
Consumers using peer-to-peer and shared services can use everything from power tools to cars, extra bedrooms, European castles, and more. These services are not new. Boarding and guesthouses go back at least to the Roman Republic. The Underground Barter economy has flourished in the United States and elsewhere for decades.
I believe that the various names that mention the shared economy are the reasons for success. Collaborative consumption and asset lifestyles are best summarized as “Why buy when you can borrow?”
On the other side of the peer-to-peer relationship with the consumer is the service provider. They have people to share, from the attic of Berlin to the parking area of Poughkeepsie.
They are not quite entrepreneurs, but they need something special, whether it’s cash or a sense of community. They are interconnected by online matchmakers such as Airbnb and Uber. Digital brokers target different levels of service providers, and use only a portion of each transaction to connect buyers and sellers and provide a payment platform.
The whole system is tied up in trust. Not the trust of the strangers of the individual, but the trust of the strangers. Numbers do not only have power, but they also seem to be credible.
Whichever you choose to trade, if something goes wrong, trust alone will not protect you. It is where insurance goes. There are a few basics you should understand if you plan to participate in accommodation and cars, which is one of the two largest markets for a shared economy.
Renting a house
The insurance company has further identified the popularity of the homeowner leasing a home’s room in a peer-to-peer network and the risk of loss and liability it represents. As a result, there is an increase in the number of homeowners’ insurance providers, adding an exception to paying guests.
Most homeowner policies allow you to rent your entire house for one month per year without a landlord policy. If you decide to rent a room in your house to visitors, read the policy carefully. If you have any exclusions, ask your dealer for a warranty.
Beginning in 2015, Airbnb will provide homeowner liability protection through the House Liability Insurance Program.
Renting a stranger’s house
Regardless of whether you are paid or not, you may be injured if you stay at someone else’s home as a guest. Even if the host does not have insurance, he or she is responsible for paying the medical expenses.
There are some important caveats to keep in mind. Liability laws vary by country, so when traveling outside the United States, you should ask about the laws and insurance policies of each country.
The good news for Airbnb users is that since 2015, every Airbnb host is covered by the company’s $ 1 million liability plan in the form of primary or secondary coverage.
Please borrow a car for a stranger.
There is an entirely new P2P service that matches arriving travelers who need a car, and who leaves the airport to and from the airport. These services, including FlightCar and Relay Rides, prepare the arriving traveler to rent a car to charge at the airport car park.
Renting a vehicle in this way requires you to go through several steps, beginning with a careful reading of the rules for drivers not listed in the policy. Some sites, such as FlightCar, insist that insurance protects the participant’s car in the event of an accident or theft, but state law may not allow this.
For example, under New York law, a third-party insurer must claim the owner’s policy before making a claim. Accidents can cause a significant rate hike.
Renting a stranger’s car
In most cases, your existing insurance will provide a commercial rental or friend’s car on your behalf when you drive someone else’s car. However, you must always read the policy and consult with the insurer to ensure that you are insured and covered.
For example, you can only be compensated for liability (injuries of others), not crashes (damage to the car in operation). Some peer-to-peer lending services offer additional coverage for additional collision coverage.