Centennial, CO Short-Term Rentals: Insurance Requirements (2026)
Key Facts
- Required Coverage
- General liability insurance
- Authority
- Ord. 2021-O-14, Ch. 6 Art. 9
- Homeowners Policy
- Typically excludes STR use
- Verify Amount
- Confirm with City Clerk
Summary
Centennial's STR ordinance requires hosts to maintain general liability insurance for the rental property. The application process under Ord. 2021-O-14 calls for documentation as part of the licensing package. Standard homeowners policies typically exclude commercial STR activity, so a dedicated STR endorsement or commercial policy is generally needed.
Proof of liability insurance to cover any property damage or bodily injury claims related to use of the to-be licensed premises for short-term rental in an amount no less than one million dollars ($1,000,000.00) per claim and in the aggregate. Such coverage shall be maintained in full force and effect for the term of the license. Alternatively, a licensee may elect to conduct each short-term rental transaction through a hosting platform that provides equal or greater insurance coverage for each short-term rental use and document such election upon the insurance form affidavit provided by the Director as part of the license application.
Full Breakdown
Under Centennial Ordinance 2021-O-14 (Chapter 6, Article 9 of the Municipal Code), STR operators must maintain general liability insurance covering the rental activity as a condition of licensing. Standard homeowners insurance policies generally exclude commercial activity such as short-term rentals, which means most hosts need a dedicated STR endorsement, a landlord/dwelling policy with STR coverage, or a commercial policy. Hosts should confirm the exact coverage threshold required by Centennial's STR program with the City Clerk's office before submitting the application, as the city does not publish a single statutory dollar figure on its public STR pages. Coverage must remain active throughout the license term, and lapses may result in license suspension or non-renewal. Many STR booking platforms (Airbnb's AirCover, Vrbo's Liability Insurance) provide supplemental host protection but do not necessarily satisfy a municipality's stand-alone liability requirement.
Violations & Fines
Operating without required liability insurance: license denial, suspension, or revocation. Lapsed coverage discovered during renewal: potential non-renewal until proof is provided.
Frequently Asked Questions
Does Centennial require STR insurance?
Will my homeowners policy cover an Airbnb in Centennial?
Sources & Official References
Other rules in Centennial
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