Avondale, AZ Short-Term Rentals: Insurance Requirements (2026)

As a condition of the short-term rental license, Avondale requires the owner to maintain liability insurance appropriate to cover the rental in an aggregate amount of at least $500,000. The owner submits proof of this coverage as part of the application. Consistent with A.R.S. section 9-500.39, the requirement is satisfied either by the owner's own policy meeting the $500,000 threshold or by listing exclusively through an online lodging marketplace (such as Airbnb or Vrbo) that provides equal or greater liability coverage for each stay. This is one of the limited safety-related conditions the state allows cities to impose: while A.R.S. 9-500.39 bars Avondale from banning short-term rentals, it expressly authorizes a minimum liability insurance mandate at the $500,000 aggregate level. Owners should keep the policy in force for the entire period the property is licensed and operating, since a lapse can put the license at risk. Coverage should be appropriate to the commercial nature of short-term renting; standard homeowner policies often exclude or limit short-term rental activity, so many owners obtain a dedicated short-term rental or commercial liability policy, or rely on the marketplace's host protection program where it meets the threshold.