Bowling Green's Zoning Ordinance Section 5.2.4(C)(4)(c) and the city's Short Term Rental Guide do not impose a specific minimum liability insurance amount as a condition of the Conditional Use Permit or the Short Term Rental license. Unlike some other Kentucky and out-of-state municipalities that require $1,000,000 in liability coverage, Bowling Green does not codify a dollar threshold. However, operators should obtain a short-term-rental endorsement on their homeowner's policy or a separate commercial STR liability policy because most standard homeowner's policies exclude paid-rental business activity, leaving the operator personally liable for guest injuries, property damage, and third-party claims. Platform host-protection programs (Airbnb AirCover, VRBO Liability Insurance) are typically treated as supplemental, not primary, coverage.
After reviewing the Bowling Green Zoning Ordinance Article 5, Section 5.2.4(C)(4)(c) (Specific Use Standards for Short-Term Rentals), the City of Bowling Green Short Term Rental Guide published by the Building Division, and the City-County Planning Commission's STR program materials, there is no codified minimum liability insurance amount imposed as a condition of the Conditional Use Permit or the Short Term Rental license. Unlike cities such as Longmont CO ($1M minimum) or various Kentucky jurisdictions that have adopted explicit STR insurance minimums, Bowling Green's program leaves the insurance question to the operator's prudent risk management. Despite the absence of a city-mandated minimum, operators face material liability exposure that is generally not covered by a standard homeowner's policy. The Insurance Services Office (ISO) standard homeowner's HO-3 policy form contains a 'business pursuits' exclusion that voids coverage for paid short-term rental activity; a guest injury, fire, water damage, or third-party claim arising from a paid rental can therefore leave the operator personally liable for the full amount. Three coverage approaches are commonly used: (1) a short-term-rental endorsement (sometimes called a 'home-sharing' or 'rental-to-others' endorsement) on the existing homeowner's policy, available from several carriers writing in Kentucky for an annual premium typically in the $200-$600 range; (2) a dedicated commercial short-term rental policy issued by carriers such as Proper Insurance, Steadily, CBIZ, and Foremost, with liability limits typically of $1,000,000 to $2,000,000 plus property coverage; or (3) a landlord/rental dwelling policy if the property is operated as a year-round rental with STR activity layered in. Platform host-protection programs (Airbnb's AirCover for Hosts, VRBO's Liability Insurance) provide up to $1M in liability coverage for platform-booked stays, but these programs contain coverage gaps and exclusions and are widely treated by insurance professionals as supplemental rather than primary coverage. The city's STR program does require building/life-safety inspection through the Building Division change-of-use review (smoke alarms, CO detectors, fire extinguishers), which reduces but does not eliminate liability exposure.
Because Bowling Green does not codify a specific insurance minimum as a Conditional Use Permit or Short Term Rental license condition, there is no direct city enforcement action for failing to carry insurance. The risk is private: if a guest is injured, property is damaged, or a third party brings a claim arising from STR activity, the operator's standard homeowner's policy will typically deny the claim under the business-pursuits exclusion, leaving the operator personally responsible for defense costs, judgments, and settlements. This can run into hundreds of thousands of dollars for serious injury claims. Operators relying solely on platform host-protection programs (AirCover, VRBO Liability Insurance) face documented coverage gaps including off-platform direct bookings (not covered at all), claim-handling delays, exclusions for intentional acts and certain property categories, and the supplemental rather than primary nature of the coverage. Operating a CUP-approved STR without insurance does not violate the city code, but a single uninsured liability claim can financially destroy an operator who is otherwise in full compliance with the zoning and tax framework.
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