Which insurance for Airbnb Arbitrage?

Question

I want to do Airbnb Arbitrage. Which insurance do I need to buy and where?

Robert Gilstrap · Answer

The answer varies greatly depending on the arrangement of your deal with the owner/landlord but in general you need renters insurance to cover your contents (since you are renter presumably) and then excess liability coverage for your short term rental activities. Also you need to figure out how you intend to cover inevitable property damage done by guests but there are plenty of solutions for that in the marketplace where guests pay a flat fee per reservation in lieu of a deposit and you get covered for an assortment of potential issues (bad checks, credit card chargebacks, fraud, personal property damage, etc.)  Get with a good agent who understands short term rentals because the more of these you do then you can scale the insurance under a Business Owner Provider Policy (BOP) and then you don't end up with a dozen individual policies out there for each property that cost you a fortune.

John Underwood · Answer

The owner (or you) will also need to have commercial STR insurance on the building.

Cameron Moore · Answer

Find an Insurance broker to shop the market and make sure you are in the right spot for an appropriate price!

David Hurst · Answer

I'm a STR manager and have a few arbitrage units myself. We insure our arbitrage units with Proper. It's a bit expensive but STR is a higher risk as well. Hope this helps.

Which insurance for Airbnb Arbitrage?

Most Popular Reply