Insurance Requirements: Freehold vs Red Bank

Does Freehold Borough require a specific liability insurance amount for STRs?

Freehold Borough does not publish a borough-specific dollar minimum. New Jersey P.L. 2022, c.92 sets the statewide floor at $500,000 per occurrence for rental units or $300,000 for owner-occupied 1-4 unit dwellings.

How often must I file the insurance certificate with the Borough?

Annually. Under P.L. 2022, c.92 the certificate of insurance must be registered each year with the municipality. Freehold Borough collects this through the annual rental registration process administered by the Construction & Code Office.

Will Airbnb AirCover satisfy the New Jersey insurance requirement?

Most legal advisors say no - AirCover is excess/secondary coverage, not the primary commercial liability policy contemplated by N.J.S.A. 46:8-39. Confirm with your insurance agent and the Borough Clerk at 732-462-4200.

Does Red Bank require liability insurance for Airbnb hosts?

Yes. Red Bank Borough Code Chapter 559, adopted by Ordinance 2024-23 on May 23, 2024, requires short-term rental owners to provide proof of general liability insurance with a minimum coverage of $500,000, attached to and concurrent with the STR permit application submitted to the Fire Marshal's Office. New Jersey has no statewide STR insurance requirement, but the local $500,000 floor is mandatory in Red Bank.

Will Airbnb's AirCover satisfy Red Bank's STR insurance rule?

Not on its own. Red Bank Chapter 559 requires the operator to file proof of $500,000 general liability insurance at the time of permit application. AirCover for Hosts and Vrbo Liability Coverage offer up to $1,000,000 per occurrence on covered platform bookings as secondary protection, but they do not replace the primary owner-held policy the borough requires. Confirm the acceptable certificate format with the Fire Marshal's Office at 732-530-2700.