Insurance Requirements: Arlington Heights vs Chicago
How do insurance requirements rules compare between Arlington Heights, IL and Chicago, IL?
Arlington Heights has fewer restrictions than Chicago.
Arlington Heights, IL
Cook County
Arlington Heights does not impose specific insurance requirements on short-term rental operators through its municipal code. There is no village ordinance requiring hosts to carry a minimum amount of liability insurance for short-term rental activity. However, standard homeowner's insurance policies typically exclude commercial lodging use, and hosts are strongly advised to obtain appropriate coverage.
View full Arlington Heights rules →Chicago, IL
Cook County
Chicago requires short-term rental hosts to maintain adequate liability insurance. The Shared Housing Ordinance (MCC 4-14) mandates that both intermediary platforms and individual hosts carry insurance covering guests and property damage.
View full Chicago rules →Key Facts Comparison
| Fact | Arlington Heights | Chicago |
|---|---|---|
| Village Insurance Mandate | None | - |
| Homeowner's Policy | Typically excludes STR use | - |
| Platform Coverage | Airbnb AirCover has exclusions | - |
| State Requirement | None | - |
| Recommendation | Obtain STR-specific coverage | - |
| Platform Liability Min. | - | $1 million per occurrence |
| Host Insurance | - | Homeowner's/renter's policy covering STR activity required |
| Code Section | - | MCC 4-14 |
| Shared Housing Surcharge | - | 4% on gross receipts |
| Hotel Tax | - | 4.5% on stays of 29 nights or fewer |
Highlighted rows indicate differences between cities.
Arlington Heights FAQ
Do I need special insurance for my Airbnb in Arlington Heights?
Arlington Heights does not legally require short-term rental insurance. However, standard homeowner's policies typically exclude commercial lodging use. You should strongly consider a short-term rental rider or standalone policy.
Does Airbnb's insurance cover me in Arlington Heights?
Airbnb provides AirCover liability protection, but it has significant exclusions and limitations. It is not a substitute for your own comprehensive insurance policy.
What happens if a guest is injured at my rental and I don't have insurance?
Without proper coverage, you could be personally liable for medical bills, legal costs, and damages. Standard homeowner's insurance may deny the claim if the property was being used for short-term rental purposes.
Chicago FAQ
What insurance do I need to run an Airbnb in Chicago?
You need homeowner's or renter's insurance that covers short-term rental activity, or a supplemental STR policy. Platform host protection insurance alone does not satisfy the city's requirement under MCC 4-14.
What taxes apply to Chicago short-term rentals?
Chicago imposes a 4% Shared Housing Surcharge on gross receipts, plus the 4.5% Hotel Accommodation Tax and a Domestic Violence Surcharge on stays of 29 nights or fewer.
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