Asheville, NC Short-Term Rentals: Insurance Requirements (2026)

Asheville's Unified Development Ordinance makes liability coverage a standing condition of the permit rather than a one-time application item. Sec. 7-16-1(c)(9)n requires that "the homestay owner or operator shall maintain liability insurance on the property, which covers the homestay use and homestay guests," and Sec. " The code does not set a minimum dollar coverage amount in either subsection, but the obligation runs continuously alongside the other special requirements checked at the mandatory annual review and inspection under Sec. 7-16-1(c)(9)c for homestays and Sec. 1)k for short-term vacation rentals, both of which require the use to be "reviewed annually and inspected for compliance" with the permit.

Because "the owner or operator" can satisfy the requirement, a management company or the resident host can hold the policy as long as it names and covers the actual homestay or rental use and the guests occupying it, not just the owner's general homeowner's policy for personal occupancy. Losing insurance coverage mid-term leaves the operator out of compliance with the special requirements that keep the permit valid, the same standard that governs occupancy limits, signage, and parking for the same use.