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Cambridge, MA Short-Term Rentals: Insurance Requirements (2026)

Heavy Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified April 2026

Key Facts

Minimum Coverage
1 million dollars
Statute
MGL c.64G s.14
Platform Coverage
Acceptable if equivalent
Homeowner Policy
Usually excludes STR
Proof
Required at registration

Summary

Massachusetts law requires STR operators to carry at least 1 million dollars in liability insurance covering each rental, either directly or through the hosting platform.

Section 14: Regulation of operators by cities or towns

Section 14. A city or town, by ordinance or by-law, may regulate operators registered pursuant to section 67 of chapter 62C and impose penalties for the violation of such an ordinance or by-law. A city or town, by ordinance or by-law, may:

(i) regulate the existence or location of operators under this section within the city or town, including regulating the class of operators and number of local licenses or permits issued to operators under this section and the number of days a person may operate and rent out an accommodation in a calendar year;

(ii) require the licensing or registration of operators within the city or town [...];

(iii) require operators to demonstrate that any properties or premises controlled, occupied, operated, managed or used as accommodations subject to the excise under this chapter are not subject to any outstanding building, electrical, plumbing, mechanical, fire, health, housing or zoning code enforcement [...];

(iv) require properties or premises controlled, occupied, operated, managed or used by operators as an accommodation subject to the excise under this chapter to undergo health and safety inspections [...].

Notwithstanding any ordinance or by-law adopted by a city or town pursuant to this section, an operator of a short-term rental shall post inside the short-term rental unit information regarding the location of any fire extinguishers, gas shut off valves, fire exits and fire alarms in the unit and building.

Source: MGL c.64G Section 14View official code

Full Breakdown

Under MGL c.64G s.14, all Massachusetts short-term rental operators including those in Cambridge must maintain liability insurance of at least 1 million dollars per occurrence covering the unit during each stay. This coverage may be obtained through a standalone commercial host policy or provided by the listing platform such as Airbnb AirCover or Vrbo Liability Insurance. Operators must attest to coverage during Cambridge registration. Standard homeowner and renter policies typically exclude commercial short-term rental activity, so operators should confirm coverage with their insurer. Proof of insurance may be requested during inspection.

Frequently Asked Questions

Does Airbnb coverage satisfy the rule?
Yes, Airbnb AirCover providing 1 million in host liability meets the MA statutory requirement.
Is my homeowner policy enough?
Usually no, most exclude commercial rental activity and require a separate endorsement or commercial policy.

Sources & Official References

Other rules in Cambridge

All Cambridge rules

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