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🏠 Short-Term Rentals/Insurance Requirements

Insurance Requirements: Boston vs Chelsea

How do insurance requirements rules compare between Boston, MA and Chelsea, MA?

Boston and Chelsea have similar restriction levels.

Boston, MA

Suffolk County

Heavy Restrictions

Boston STR hosts must carry at least $1 million in liability coverage for the unit, either through a personal policy endorsement or the hosting platform.

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Chelsea, MA

Suffolk County

Heavy Restrictions

Massachusetts law requires every short-term rental operator to maintain at least $1,000,000 in liability insurance covering each rental, under MGL c. 175 §4F (added by Chapter 337 of the Acts of 2018). The hosting platform's coverage may satisfy the requirement if it meets or exceeds the $1M minimum and defends the operator and any tenants/owners in the building. Chelsea enforces this state mandate through its STR registration program.

View full Chelsea rules →

Key Facts Comparison

FactBostonChelsea
Minimum Coverage$1,000,000-
Acceptable SourcePlatform coverage or landlord policy-
FilingCertificate at registration-
CondosCheck master policy and bylaws-
State Minimum-$1,000,000 liability per occurrence
Statute-MGL c. 175 §4F (Acts 2018, c. 337)
Platform Coverage Allowed-If equal/greater than $1M
FAIR Plan Cap-$500,000 (private gap coverage needed)
HO-3 Standard-Typically excludes STR activity
Chelsea Daily Fine-$300/day for STR violations

Highlighted rows indicate differences between cities.

Boston FAQ

Chelsea FAQ

How much liability insurance does a Chelsea short-term rental host need?

Massachusetts law requires at least $1,000,000 in liability coverage per occurrence under MGL c. 175 §4F (added by Chapter 337 of the Acts of 2018). The policy must defend and indemnify the operator and any tenants or owners in the building for bodily injury and property damage arising from the rental.

Does Airbnb's host coverage satisfy the Massachusetts STR insurance requirement?

MGL c. 175 §4F allows the hosting platform's coverage to satisfy the requirement if it equals or exceeds $1,000,000 and defends and indemnifies the operator and the building's tenants or owners. Confirm with your platform and a licensed Massachusetts insurance producer that your specific policy meets the statute.

Will my Chelsea homeowner policy cover Airbnb stays?

Standard Massachusetts HO-3 homeowner policies typically exclude short-term commercial rental activity. Most Chelsea hosts add a short-term rental endorsement, a dedicated commercial-liability policy, or rely on platform coverage that meets the $1M MGL c. 175 §4F minimum. Confirm with a licensed insurance producer before listing.

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