Insurance Requirements: Phoenix vs Tempe
How do insurance requirements rules compare between Phoenix, AZ and Tempe, AZ?
Phoenix and Tempe have similar restriction levels.
Phoenix, AZ
Maricopa County
Phoenix STR permit applicants must carry at least $500,000 in liability insurance for the rental, or advertise and book through a platform that provides equal or greater coverage.
View full Phoenix rules →Tempe, AZ
Maricopa County
Tempe's STR license ordinance (O2023.01) and Arizona law (ARS 9-500.39) establish the framework for STR insurance. Operators should carry liability insurance as standard homeowner's policies may exclude STR activity. STR platforms provide some host protection, but personal coverage is recommended. The annual $250 license fee helps fund enforcement.
View full Tempe rules →Key Facts Comparison
| Fact | Phoenix | Tempe |
|---|---|---|
| Code Section | A.R.S. 9-500.39(B)(8); Phoenix City Code Sec. 10-197 | - |
| Minimum Coverage | $500,000 aggregate liability | - |
| Alternative | Platform providing equal/greater coverage | - |
| License | - | Tempe STR license required ($250/year) |
| License Penalty | - | Up to $1,000/month without license |
| Homeowner's Policy | - | May exclude STR activity |
| Platform Insurance | - | Limited host protection available |
| TPT Rate | - | 14.07% combined |
| State Law | - | ARS 9-500.39 |
Highlighted rows indicate differences between cities.
Phoenix FAQ
Do I need insurance for a Phoenix short-term rental?
Yes. You must carry at least $500,000 in liability insurance, or book exclusively through a platform like Airbnb or Vrbo that provides equal or greater coverage, per A.R.S. 9-500.39(B)(8).
Tempe FAQ
Do I need insurance for my Tempe STR?
While not mandated at a specific level by the city, standard homeowner's insurance likely excludes STR activity. Specialized STR insurance is strongly recommended.
How much is the Tempe STR license?
The annual non-refundable fee is $250 per property. Failure to obtain a license carries penalties up to $1,000 per month.
What taxes do I pay on STR income in Tempe?
The combined TPT rate is 14.07%. You need a TPT license from the Arizona Department of Revenue.
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