Short-term rental insurance in Washington: what property managers need
Seattle limits STRs to primary residences. Other jurisdictions vary. State collects lodging taxes.
There's no single statewide insurance mandate, but cities and counties set their own permit conditions — and a growing number ask for proof of commercial coverage. Check each market you operate in, not just the state.
The headline obligation to check first when adding Washington properties to your portfolio.
Top short-term rental markets in Washington
The cities where Washington portfolios concentrate, and what each one asks of an operator before the first guest arrives. Insurance requirements shown are the city's stated permit condition; your management agreements and lenders will usually ask for more.
| City | Permit or registration | Proof of insurance | Worth knowing |
|---|---|---|---|
| Seattlesource · 2026-09-09 | Short-Term Rental Operator License plus Seattle business license tax certificate | Required — $1,000,000 aggregate under state law (RCW 64.37.050), or transact only through a platform providing equal coverage | Operators capped at two units — primary residence plus one — unless documented legacy use before Sept 30, 2017. |
| Spokanesource · 2026-09-09 | Short-Term Rental Permit plus city business license | Required — Copy of liability insurance required with the permit; state law sets $1,000,000 aggregate | Permanent residents (owners and tenants) may apply; annual permit with a notarized life-safety form and neighbor notice. |
| Leavenworth / Chelan County (unincorporated)source · 2026-09-09 | Chelan County Short-Term Rental Permit (Tier 1 owner-occupied, Tier 2 non-owner-occupied, Tier 3 either) | Required — $1,000,000 aggregate primary liability | Tier 2 and 3 permits are capped and accepted only June 1–July 31; the Leavenworth/Plain/Lake Wenatchee area is closed to new applications. |
| Tacomasource · 2026-09-09 | City business license; a Transient Accommodation License if renting three or more rooms — no dedicated STR permit | Required — $1,000,000 aggregate under state law (RCW 64.37.050), or platform coverage | Entire homes allowed in all residential zones; renting 3–9 rooms in some zones needs a Conditional Use Permit. |
Short-term rental insurance by city in Washington
What each market asks for, in plain words, so you can quote the right limit before you take on a home there.
Short-term rental insurance in Seattle
Seattle requires a permit: Short-Term Rental Operator License plus Seattle business license tax certificate. Proof of liability insurance is part of the permit: $1,000,000 aggregate under state law (RCW 64.37.050), or transact only through a platform providing equal coverage. Operators capped at two units — primary residence plus one — unless documented legacy use before Sept 30, 2017. A Velaris program issues the certificate Seattle asks for at the limit it names, and covers guest damage on every reservation.
Source, verified 2026-09-09Short-term rental insurance in Spokane
Spokane requires a permit: Short-Term Rental Permit plus city business license. Proof of liability insurance is part of the permit: Copy of liability insurance required with the permit; state law sets $1,000,000 aggregate. Permanent residents (owners and tenants) may apply; annual permit with a notarized life-safety form and neighbor notice. A Velaris program issues the certificate Spokane asks for at the limit it names, and covers guest damage on every reservation.
Source, verified 2026-09-09Short-term rental insurance in Leavenworth / Chelan County (unincorporated)
Leavenworth / Chelan County (unincorporated) requires a permit: Chelan County Short-Term Rental Permit (Tier 1 owner-occupied, Tier 2 non-owner-occupied, Tier 3 either). Proof of liability insurance is part of the permit: $1,000,000 aggregate primary liability. Tier 2 and 3 permits are capped and accepted only June 1–July 31; the Leavenworth/Plain/Lake Wenatchee area is closed to new applications. A Velaris program issues the certificate Leavenworth / Chelan County (unincorporated) asks for at the limit it names, and covers guest damage on every reservation.
Source, verified 2026-09-09Short-term rental insurance in Tacoma
Tacoma requires a permit: City business license; a Transient Accommodation License if renting three or more rooms — no dedicated STR permit. Proof of liability insurance is part of the permit: $1,000,000 aggregate under state law (RCW 64.37.050), or platform coverage. Entire homes allowed in all residential zones; renting 3–9 rooms in some zones needs a Conditional Use Permit. A Velaris program issues the certificate Tacoma asks for at the limit it names, and covers guest damage on every reservation.
Source, verified 2026-09-09Snapshot for orientation, not legal advice. Short-term rental ordinances change frequently — verify current requirements with the relevant city or county, and see the full state-by-state guide for context.
The property manager's compliance checklist
Whatever the state, professional operators run the same loop for every market they enter. In Washington, start here.
- Confirm permit and registration requirements for every Washington market you operate in — rules can differ block by block
- Check each jurisdiction's insurance conditions: minimum liability limits, named additional insureds, and COI format
- Review your management agreements — owner-required insurance provisions apply on top of local rules
- Keep proof of coverage renewal-ready; lapsed COIs are a common cause of permit problems
- Watch for changes: STR ordinances are amended frequently, and what was compliant last season may not be now
Velaris programs handle the insurance side of this list: COIs on demand, limits that meet local mandates, and coverage across the whole portfolio.
Washington STR insurance questions
Is short-term rental insurance required in Washington?
There's no single statewide insurance mandate, but cities and counties set their own permit conditions — and a growing number ask for proof of commercial coverage. Check each market you operate in, not just the state. Snapshot for Washington: Seattle limits STRs to primary residences. Other jurisdictions vary. State collects lodging taxes.
What insurance do Washington property managers typically need?
The professional baseline is commercial general liability for guest activity (jurisdictions that mandate coverage usually specify $300K–$1M per occurrence), property damage protection for the homes you manage, and the ability to issue certificates of insurance naming cities, HOAs, or owners as required. Company-level lines — E&O, workers' compensation — apply to the management business itself.
Can Velaris issue COIs that meet local requirements?
Yes. Velaris generates certificates of insurance from your dashboard with the limits, endorsements, and named additional insureds your jurisdiction requires, and monitors renewals so proof of coverage doesn't lapse mid-permit.
Which Washington cities require a short-term rental permit?
Among the state's largest STR markets, Seattle (Short-Term Rental Operator License plus Seattle business license tax certificate); Spokane (Short-Term Rental Permit plus city business license); Leavenworth / Chelan County (unincorporated) (Chelan County Short-Term Rental Permit (Tier 1 owner-occupied, Tier 2 non-owner-occupied, Tier 3 either)); Tacoma (City business license; a Transient Accommodation License if renting three or more rooms — no dedicated STR permit). Of these, Seattle, Spokane, Leavenworth / Chelan County (unincorporated), Tacoma also require proof of liability insurance with the permit. Verify with each city before applying; ordinances change often.
How current is this page?
This is a summary snapshot for orientation, not legal advice — short-term rental ordinances change frequently. Verify requirements with the relevant city or county before relying on them, and talk to us for the current picture across your portfolio.
Operating in Washington?
We track STR insurance requirements across all 50 states. Tell us your markets and we'll map coverage and COIs to what each one requires.
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