Bellingham, WA Short-Term Rentals: Insurance Requirements (2026)

Washington's Short-Term Rental Act (RCW Chapter 64.37, enacted 2019) is the operative source of STR insurance requirements in Bellingham. RCW 64.37.050 provides that 'a short-term rental operator must maintain primary liability insurance to cover the short-term rental dwelling unit in the aggregate of not less than one million dollars or conduct each short-term rental transaction through a platform that provides equal or greater primary liability insurance coverage.' The $1,000,000 minimum is per-operator (aggregate), not per-incident, and is treated as primary - it responds first, ahead of any other policy. BMC 20.10.037 incorporates the statewide framework by requiring proof of liability insurance with the STR permit application and by referencing applicable state law. Standard homeowners and landlord policies typically exclude commercial short-term-rental use (transient lodging), so most Bellingham operators must either (1) purchase a stand-alone short-term-rental policy or short-term-rental rider, (2) purchase a commercial general liability policy with a hospitality endorsement, or (3) book exclusively through a platform that provides primary host liability coverage (Airbnb's AirCover Host Liability Insurance and Vrbo's Liability Insurance both provide up to $1,000,000 of primary liability coverage that satisfies RCW 64.37.050 when applied to platform-booked stays - but does not cover direct bookings made outside the platform). Operators should document policy declarations pages or platform coverage confirmations and present them to the Bellingham Permit Center at land use review and at biennial permit renewal upon request. Additional Washington statutes layer on related coverage: RCW 64.37.030 (consumer safety) requires CO alarms compliant with RCW 19.27.530, and operators are liable for injuries caused by failure to maintain those alarms. Bellingham additionally requires a safety inspection before STR permit approval (smoke alarms, CO detectors, egress) and requires posting of a Good Neighbor Guide in the unit, both of which create documentary evidence that an insurer or court can use to evaluate operator standard of care.