Massachusetts law requires every short-term rental operator to maintain at least $1,000,000 in liability insurance covering each rental, under MGL c. 175 §4F (added by Chapter 337 of the Acts of 2018). The hosting platform's coverage may satisfy the requirement if it meets or exceeds the $1M minimum and defends the operator and any tenants/owners in the building. Chelsea enforces this state mandate through its STR registration program.
MGL c. 175 §4F, enacted as part of Chapter 337 of the Acts of 2018, requires that every Massachusetts short-term rental be covered by liability insurance of at least $1,000,000 per occurrence that defends and indemnifies the operator and any tenants or owners in the building for bodily injury and property damage arising from the rental. The statute permits the operator to satisfy the requirement either through their own policy or through a hosting platform (such as Airbnb or Vrbo) that maintains equal or greater coverage. The Massachusetts FAIR Plan supplemental STR coverage caps at $500,000, so FAIR Plan policyholders must obtain the remaining liability through a private carrier or surplus-lines policy. Chelsea's Short-Term Rental Application is filed through Inspectional Services (617-466-4142) and operates within this state framework. Standard Massachusetts homeowner HO-3 policies typically exclude short-term commercial rental activity, so operators commonly add a short-term rental endorsement or a dedicated commercial-liability policy. Verify your specific coverage with a licensed Massachusetts insurance producer; the Mass.gov insurance guidance page explains the operator-vs.-platform allocation in detail.
Renting a unit in Massachusetts without the required $1,000,000 liability coverage is a violation of MGL c. 175 §4F. In Chelsea, operating an STR without registration or in violation of program requirements (including state-law compliance referenced in the application) is fined $300 per violation per day, with three or more noise/trash/disorderly violations within a year rendering the operator ineligible to register or re-register.
Other ordinances people look up for this city. Green dot = verified primary-source excerpt.
Chelsea, MA
Construction noise regulated under Chelsea Code Ch. 16 and MassDEP 310 CMR 7.10. Standard hours are Mon–Fri 7 AM–6 PM, Sat 8 AM–5 PM; no construction on Sund...
Chelsea, MA
Barking dogs addressed under Chelsea Code Ch. 4 (Animals) and general nuisance provisions. Excessive barking is a civil nuisance complaint under MGL c. 140. ...
Chelsea, MA
Chelsea enforces noise complaints through Chapter 16 (Miscellaneous Offenses). No single statewide decibel limit applies; the city relies on MassDEP 310 CMR ...
Chelsea, MA
Chelsea is in the flight path of Boston Logan International Airport (about 1 mile west). Aircraft noise is governed by federal FAA regulations and Massport; ...
Chelsea, MA
Chelsea has a citywide residential parking sticker program under Code §13-4.2. The Chelsea Waterfront District requires sticker parking 8 AM–6 PM Mon–Fri. St...
Chelsea, MA
Abandoned vehicles on public ways subject to state law MGL c. 90 §22C (72-hour threshold). Chelsea enforces through its ISD and Police Department. Inoperable...
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