Baltimore County, MD Short-Term Rentals: Insurance Requirements (2026)

Two sections of the Baltimore County Code work together on insurance. Section 35-6-204 lists what the short-term rental license application form must require, and item (7) is proof of an active liability insurance policy of at least $1,000,000 for the short-term rental. Section 35-6-209 sets the host requirements and limitations that apply once the license is issued, and subsection (b)(4) says the host maintains an active liability insurance policy of at least $1,000,000 for the short-term rental. The dollar figure is identical in both places, so the amount proved at application is the amount the host must keep in force for the whole license term. Section 35-6-209(b) opens with the words "At all times," which means a policy that is in place on the day of application but allowed to expire later still breaks the rule.

The duty falls on the host, which § 35-6-201 defines as the owner of a short-term rental or the owner's authorized agent, including an accommodations provider. A short-term rental is a residential dwelling unit leased through a hosting platform for occupancy of no more than 30 consecutive days. The same definition excludes a bed-and-breakfast inn, a hotel, or a motel, so the $1,000,000 requirement in this subtitle is aimed at houses and units rented through platforms, not at lodging businesses.

The code states the requirement per rental and names one figure. It does not set a lower minimum for a hosted unit, where the host lives on the property during the rental, or a higher one for an un-hosted unit, and it does not scale the amount by bedroom count or guest count.

The insurance proof is one piece of a licensing package. The host submits the Director's application form and pays an application fee set by the County Administrative Officer that cannot be less than $300. A license runs three years and renews for another three-year term on payment of a renewal fee of at least $300. The license cannot be transferred to another host for any reason, including sale of the rental, so a buyer who wants to keep renting needs a license of their own backed by their own policy. Before issuing or renewing a license, the Director or a designee can require an inspection by Code Enforcement or the Fire Marshal to verify compliance with the subtitle, and § 35-6-212 lets the county enter and inspect during normal business hours on 24 hours' notice.