Short-term rental laws and insurance requirements by state
STR laws vary by state, county, and city. This guide covers the 20 most active short-term rental markets, the cities inside them that require permits, and what each one asks for in insurance and compliance.
Why regulations matter for your business
Operating without the right permits or coverage can mean fines, forced shutdowns, or personal liability. And regulations are changing fast — over 200 U.S. cities updated their STR rules in the last 2 years.
Short-term rental laws by state at a glance
Where a permit is needed, whether proof of insurance comes with it, and the cities that set the rules. Each state guide carries the city-level detail and its sources.
| State | Insurance | Headline requirement | Cities with a permit rule | Guide |
|---|---|---|---|---|
| California | Varies by locality | Local permits required in most major cities | Palm Springs, Los Angeles, San Diego +2 (3 require proof of insurance) | California guide |
| Florida | Insurance required | State vacation rental license (DBPR) | Orlando, Miami Beach, Walton County (30A, Santa Rosa Beach, Miramar Beach) +2 | Florida guide |
| Texas | Varies by locality | City-level permits in major metros | Austin, Dallas, Houston | Texas guide |
| Colorado | Insurance required | License + insurance in many resort towns | Denver, Colorado Springs, Breckenridge +1 (2 require proof of insurance) | Colorado guide |
| Hawaii | Insurance required | Zoning compliance + registration | No city permits on record | Hawaii guide |
| Tennessee | Varies by locality | Nashville permit with zone-based caps | Nashville, Knoxville, Gatlinburg +2 (1 require proof of insurance) | Tennessee guide |
| Arizona | Recommended | State preemption with local safety rules | Scottsdale, Phoenix, Sedona +1 (3 require proof of insurance) | Arizona guide |
| New York | Insurance required | NYC registration + host-present rule | New York City, Southampton (Town of), Lake Placid / North Elba | New York guide |
| Oregon | Varies by locality | Primary residence + night caps in Portland | Portland, Bend | Oregon guide |
| Washington | Varies by locality | Primary residence rule in Seattle | Seattle, Spokane, Leavenworth / Chelan County (unincorporated) +1 (4 require proof of insurance) | Washington guide |
| Georgia | Varies by locality | Permits in Savannah, registration in Atlanta | Savannah, Atlanta, Tybee Island (2 require proof of insurance) | Georgia guide |
| South Carolina | Recommended | Business license + zone rules in Charleston | No city permits on record | South Carolina guide |
| North Carolina | Recommended | Local permits + state occupancy tax | Asheville, Nags Head (Outer Banks) | North Carolina guide |
| Nevada | Insurance required | Permit + insurance in Clark County | Las Vegas, Clark County (unincorporated Las Vegas), Reno / Washoe County (unincorporated) (3 require proof of insurance) | Nevada guide |
| Louisiana | Insurance required | NOLA permit + $1M liability insurance | New Orleans, Baton Rouge (1 require proof of insurance) | Louisiana guide |
| Montana | Recommended | Emerging local permit requirements | No city permits on record | Montana guide |
| Utah | Varies by locality | Zone caps + permits in Park City | Salt Lake City, Park City, Moab | Utah guide |
| Virginia | Varies by locality | Local regulation varies by jurisdiction | Virginia Beach, Richmond, Alexandria (1 require proof of insurance) | Virginia guide |
| Michigan | Recommended | Growing local permit requirements | No city permits on record | Michigan guide |
| Massachusetts | Insurance required | State registration + community impact fee | Boston, Nantucket, Provincetown (3 require proof of insurance) | Massachusetts guide |
| Arkansas | Insurance required | Little Rock permit with $1M liability; Fayetteville STR license | Little Rock, Hot Springs, Fayetteville (2 require proof of insurance) | Arkansas guide |
Regulations by state
A snapshot of the top 20 STR markets. Regulations change frequently — contact us for the latest requirements in your area.
Regulations vary widely by city. Los Angeles, San Francisco, and San Diego each have distinct permitting and occupancy rules.
State-level licensing through DBPR required for all vacation rentals. Local taxes and safety inspections apply.
No state-level STR regulation. Cities like Austin, San Antonio, and Dallas have their own permit systems.
Denver requires licenses. Mountain towns like Breckenridge and Steamboat Springs have cap systems and insurance mandates.
Strict zoning laws. Many areas prohibit STRs entirely. Maui County and Honolulu have aggressive enforcement.
Nashville requires permits with a 3% cap in some zones. State law allows cities to regulate STRs.
State law prohibits outright STR bans but allows cities to regulate safety, noise, and insurance requirements.
NYC requires registration and limits rentals under 30 days when the host is not present. Significant fines for violations.
Portland limits STRs to primary residences with a 95-night annual cap. Other cities have their own rules.
Seattle limits STRs to primary residences. Other jurisdictions vary. State collects lodging taxes.
Savannah has a strict permit system with zone limitations. Atlanta requires registration and hotel/motel tax collection.
Charleston requires business licenses and limits STRs in some zones. Beach communities have their own rules.
Outer Banks and Asheville are major markets with local regulations. State collects occupancy tax.
Clark County (Las Vegas) requires permits, insurance, and a 30-day minimum in many zones. Other areas are less regulated.
New Orleans has one of the most detailed STR regulatory frameworks in the country, including insurance and occupancy limits.
Popular resort areas like Big Sky and Whitefish are adopting permit systems. State has limited regulation.
Park City has strict STR regulations with zone caps and permit requirements. Salt Lake City has lighter rules.
State allows localities to regulate. Virginia Beach, Arlington, and Richmond each have distinct approaches.
Traverse City and other lake communities are increasingly regulating STRs. State passed enabling legislation in 2024.
State requires registration and a community impact fee. Cape Cod towns have additional local rules.
No statewide short-term rental statute; Little Rock, Fayetteville and Hot Springs each run their own license and permit systems, with caps on non-owner-occupied rentals.
Insurance requirements are growing
More cities are requiring proof of commercial insurance as a condition of permitting. Here's what that typically looks like.
Common requirements
- Commercial general liability: $300K to $1M per occurrence
- Certificate of insurance naming the city or county
- Proof of coverage before permit is issued
- Annual renewal with updated COI
- Additional insured endorsements for property owners
How Velaris helps
- Coverage limits that meet or exceed local requirements
- COIs generated instantly from your dashboard
- Cities and counties added as additional insureds at no cost
- Regulatory change monitoring for your portfolio
- Compliance documentation for audit and renewal
Frequently asked questions
Do all states require insurance for short-term rentals?
No. Insurance requirements vary by state and often by city or county. Some jurisdictions mandate specific liability limits (like New Orleans, which requires $1M), while others have no insurance requirement at all. Even where it's not legally required, carrying coverage is standard practice for professional property managers.
What kind of insurance do STR regulations typically require?
Most regulations that mandate insurance specify commercial general liability coverage with minimum per-occurrence limits, typically between $300,000 and $1,000,000. Some also require proof of property damage coverage or business interruption insurance.
How do I know what's required in my area?
Check your city or county's planning and zoning department. Regulations change frequently — what was allowed last year may require a permit now. We track regulatory changes across all 50 states and can help you understand what's required for your specific properties.
Can Velaris help with compliance?
Yes. We generate COIs that meet the specific requirements of your jurisdiction, including named additional insureds, minimum coverage limits, and endorsements. If a city requires proof of $1M liability coverage, your Velaris COI will reflect that.
What happens if regulations change after I'm already operating?
You'll need to comply with the new rules, which may mean obtaining a permit, increasing your coverage limits, or adjusting your operations. We monitor regulatory changes and notify you when something affects your portfolio.
Talk to us about compliance in your state
We track STR regulations across all 50 states and can help you understand what's required for your portfolio.
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