Berwyn, IL Short-Term Rentals: Insurance Requirements (2026)

Section 879C.05(D) sits among the standards that must be met before Berwyn issues a short-term rental license. The owner must provide proof of homeowner's insurance or host protection insurance in the amount of at least $500,000 to the city as part of its application. Two kinds of policy qualify: a homeowner's policy or a host protection policy. The floor is $500,000, so a smaller policy fails the standard even if it is current.

The timing matters. The proof goes in with the application, not after approval, and Section 879C.02 requires the fee to accompany that same application. Section 879C.03 then holds the license until the premises has been inspected and approved by the city, so a complete file has three pieces: the fee, the insurance proof and a passed inspection. Licenses renew every year under Section 879C.02 on the same conditions as the original, which means the insurance standard applies again at renewal.

The insurance duty falls on the owner. Section 879C.01 defines an owner as a person holding title or co-title to the dwelling unit, and a host as an owner engaged in providing short-term rentals. A tenant who sublets cannot satisfy the standard on the owner's behalf.

The license fees under Section 879C.04 are $350 for a non-owner-occupied applicant who is not a Berwyn resident, $250 for a non-owner-occupied applicant who is a city resident, and $100 for an owner-occupied applicant. Insurance is a separate cost on top of those fees. The standards, including this one, came in through Ordinance 23-27, passed 12-12-2023.