Homeowner's Insurance for Rental Arbitrage?

[Kyle Southard]

Anyone have insurance advice for a homeowner who is handing his SFH over to a short-term rental property manager for a year?

He's paying me $1840/mo plus security deposit with the agreement that he can sub-lease it via AirBnB, HomeAway, etc., for a year...Of course I have to have homeowner's insurance of some kind, but any advice on exactly what type/level of coverage I'll need? The AirBnB/HomeAway/VRBO platforms all offer insurance, plus the property manager has short-term rental insurance for his business (I'll look closely at his policy, of course). That's a couple layers of insurance before any claim gets to me, right? ...but I know insurance ain't that easy. Open to thoughts, especially if anyone's already done this...thank you in advance!

Please note: I've hosted on AirBnB before and had nothing but great experiences...I believe short-term rentals are easier on homes than long-term, but I don't have the time to host on AirBnB myself, therefore the arbitrage with the middle-man.

[Nathan Gesner]

@Kyle Southard you need to contact your insurance provider and explain exactly what you intend to do so they can ensure you have the proper coverage. I would also have something in writing that requires your tenant to carry the appropriate insurance.

Personally, I wouldn't allow arbitrage because you lose control of the property and accept a lot more risk. Make sure you're within the law and we'll compensated.