Know the risks before you share a home, ride or more
The sharing economy is rapidly gaining popularity. PriceWaterhouseCoopers expects it to hit $335 billion in global revenue by 2025. Before you jump in on peer-to-peer transactions, understand how it works and how to avoid financial pitfalls.
Goods & Services for Hire
A smaller segment of the sharing economy involves the lending of personal items for a fee. Lenders and borrows advertise and rent items like power tools, golf clubs or designer dresses online. Or, someone seeks help from another individual online to help with tasks like packing boxes or housecleaning.
Check out the following tips to help protect yourself and your stuff:
- When lending goods such as a designer dress or bicycle, get a security deposit to help cover any losses. Capture photos and other information in your home inventory.
- You could be liable for renting out items that you know don’t work properly. Your homeowners policy may not cover the transaction because you were paid in exchange for the rented goods.
- Hiring a stranger to help with home cleaning, moving or other tasks through sites such as TaskRabbit? Find out whose insurance covers what. The service may offer a guarantee, but often it is secondary to any insurance or policies you may already have in place.