@Brandon669
There are no penalties when deny a booking request (unless you do it very often) because of reasons "feel uncomfortable" or "dates not available" (dates are then blocked, but can be unblocked by yourself)
A new profile without reviews can be a risk, but i often host such guests without problems.
But i ask some questions first and want verified ID on the profile before accepting.
Airbnb is offering AirCover as a protecting facility if there is damage, but it is recommended to have proper insurrance yourself. Read more: Getting-protected-through-Aircover-for-hosts