Insurance Requirements: Chicago vs Skokie
How do insurance requirements rules compare between Chicago, IL and Skokie, IL?
Skokie has fewer restrictions than Chicago.
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 →Skokie, IL
Cook County
Skokie's STR pilot requires operators to carry liability insurance as a condition of licensing. Most hosts satisfy this via a commercial short-term rental policy or the liability coverage provided by platforms such as Airbnb's AirCover or VRBO's liability insurance.
View full Skokie rules →Key Facts Comparison
| Fact | Chicago | Skokie |
|---|---|---|
| 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 | - |
| Liability Minimum | - | $1,000,000 recommended |
| Platform Coverage | - | AirCover / VRBO LI accepted |
| Homeowner's Policy | - | Usually excludes STR use |
| Proof Required | - | At application + annually |
| Max Fine | - | $1,500/offense |
Highlighted rows indicate differences between cities.
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.
Skokie FAQ
Do I need insurance for an Airbnb in Skokie IL?
Yes. The 2026 pilot ordinance requires operators to carry active liability insurance as a condition of licensing. Most hosts carry at least $1M in general liability coverage.
Does Airbnb's AirCover count for Skokie?
Platform-provided coverage like Airbnb AirCover for Hosts ($1M) is generally accepted if the unit is listed exclusively on that platform. Multi-platform hosts should obtain an independent commercial policy.
Does my homeowner's insurance cover Airbnb in Skokie?
Usually not. Standard homeowner's policies typically exclude short-term commercial rental activity. You generally need a commercial STR rider or a separate commercial policy.
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