ARBITRAGE INSURANCE

[Stephanie2130]

What types of insurance do you need to Arbitrage?  I live in Iowa. 

I will be starting my first Arbitrage in a month.  Then when I do my 2nd Arbitrage, 3rd, etc.  is it only the Personal Property Insurance that I need to get for each additional property?  

[Fred13]

For the benefit of those (like me) who had no clue what 'Arbitrage Insurance means, I found this explanation helpful:

"The Airbnb rental arbitrage model is the business of renting a property on a long-term basis, then subletting it on a nightly, weekly, or monthly basis at a higher rate — for profit. It’s often done in prime, growth locations. Transactions are done on booking platforms like Airbnb, VRBO, Booking.com, and other online travel agencies (OTAs)."

Very hip with the lingo @Stephanie2130. 🙂

[Stephanie2130]

Thanks Fred!  

[Helen3 · Accepted solution]

You need home insurance for short term lets but I don't know if you can get that as a tenant @Stephanie2130  whose subletting .  Without this you're liable for any damage  your guests do at the property . 

[Mike-And-Jane0]

@Stephanie2130 what does your lease demand? I am amazed your lease even allows Airbnbs but if it does it should also define what insurance you are responsible for.

[Sean1398]

@Stephanie2130  You will need liability coverage for your exposure.  The property owner will most likely require this.  You definitely want this even if the owner doesn't require it.  Let me know if you need more details about who writes this insurance. 

[Darren392]

@Stephanie2130 With Airbnb Arbitrage, you are leasing the property and then re-leases it short-term, so insurance gets complicated quickly. You ultimately want to protect the property from damage caused by a guest, damage to your contents inside the property, your liability for a guest's injury as you are required by law to provide, or have a duty to provide a 'safe premises', and finally, you will need to protect the income the rental generates. The best policy on the market is offered by (Proper Insurance).