Providence County, RI Short-Term Rentals: Insurance Requirements (2026)

Rhode Island's STR framework begins with RIGL §42-63.1 (Tourism and Development) which imposes the 7% state sales tax plus 5% state hotel tax plus 1% local hotel tax on rentals under 30 days, and requires registration with the RI Division of Taxation. Providence Code Chapter 14.5 (Short-Term Rental Ordinance, 2019) requires STR hosts to obtain a rental registration and provide proof of commercial general liability insurance with minimum coverage of $1,000,000 per occurrence. Cranston (Ordinance 2021-52) and Pawtucket have adopted STR registration programs with varying insurance thresholds, typically $500,000 to $1,000,000. Standard homeowner policies under RI Dept. of Business Regulation Insurance Division rules exclude most commercial activity, requiring hosts to purchase commercial endorsements or dedicated STR policies. Airbnb's AirCover and Vrbo's Liability Insurance generally do NOT satisfy Providence's proof-of-insurance requirement because the host must be named insured. Coastal Resources Management Council (CRMC) jurisdiction under RIGL §46-23 applies to waterfront STRs. Providence's ordinance also requires annual inspections and lead paint compliance under RIGL §23-24.6 for pre-1978 buildings.