For the love of romance or money: Financial, insurance tips to make job relocation work

For the love of romance or money: Financial, insurance tips to make job relocation work
2016-06-29 06:07:58 UTC

Higher pay is not always the result of actively employed job seekers moving from one position to the next. In fact, previously unemployed workers were more likely to receive higher pay at their next job after moving to a new location, according to a Federal Reserve Bank of St. Louis report via CBS News.

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However, people switch jobs for a variety of reasons: lack of interest in their current fields, employee conflict, apprenticeships and internships, better pay, new positions, spouses and children, or wanting to start over in a new place.

Romance has also been the driving force to make some people move from one state to another. According to Mayflower, a moving and storage services provider, “nearly half (46 percent) of 18 to 35-year-olds have moved to a new city, state or country to be with or find a romantic partner.”

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Good restaurants (56 percent), child-friendly activities (23 percent) and church/religion (22 percent) are also top priorities for finding a new city to live in. However, that happy ending may not be so happy if money becomes an issue once the relationship gets serious. In a recent Daily Infographic, 50 percent of divorcing couples brought significant debt to a relationship, and 25 percent have at least one partner with a pile of student loans.

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Whether single, married or newly divorced, somewhere along the line, those new city dwellers will have to find jobs.

So what happens when a job seeker isn’t quite so sure whether the new job will work out and wants to hold onto the old place just in case? Or, maybe they’re not so sure about moving for love? One of the most economical ways to avoid paying for an empty home while renting (or purchasing) a new one is to take advantage of vacation rental options (ex. Airbnb).

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However, there may be some drawbacks to doing so when it comes to insurance. The primary downside, according to an agent and representative from Assurant, is that unless the vacation rental is owned by the person posting it for a temporary stay, renters insurance may not cover liability cases. While property insurance (such as theft) may be covered, if a tenant is subleasing the place, things like bodily injury, water damage and legal fees could be up for debate when it comes to insurance coverage.

Recommended Reading: "Finding a vacation home: Deciphering between renters, landlord, Host Protection insurance"

For a condo owner or an apartment complex owner, landlord insurance could provide better financial coverage but won’t fix the social responsibility.

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“There are pros and cons to listing a home as a vacation rental while relocating,” said Jaime Connelly, the Director of Business Development of relocation software company  UrbanBound, to Gurulife's Shamontiel. “For a temporary work assignment, I would say ‘yes, this could be a great way to get incoming money to help pay for expenses while living elsewhere.' On a permanent relocation, this could create some extra work for the relocating employee to have to manage.”

Recommended Reading: "Chicago Business Owner Uses Technology To Help With Job Relocation

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                                                   Jaime Connelly (Photo courtesy of Kinga Ricci of Urban Bound)

Although landlord insurance provides better coverage for vacation rental tenants, physically not being there to take care of housing issues can lead to possible drawbacks.

“If issues arise back at the home during the vacation rental stays, that could create stress,” said Connelly. “But again, it is also bringing in money to help cover expenses so it sort of depends on the scenario. The relocating employee might need to hire someone to clean the home and change out linens, etc., for the next guest so the financial breakdown would need to make sense to cover costs.

"However, if they feel a bit uncertain about the new city or new job, this could provide some comfort. The employer might feel differently about that (because) an employer probably wants someone who is uber confident in accepting the new job assignment and consequent relocation. They want their relocating employee to come to work on day one, well-prepared and ready to conquer.”

Depending on the status of the relationship, some may say “conquering” a new relationship also involves giving up the old to start anew.

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