Chicago requires short-term rental hosts to maintain adequate liability insurance. The Shared Housing Ordinance (MCC 4-14) mandates that both intermediary platforms and individual hosts carry insurance covering guests and property damage.
Under MCC 4-14, short-term residential rental intermediaries must maintain liability insurance of at least $1 million per occurrence. Individual shared housing hosts must carry homeowner's or renter's insurance that covers short-term rental activity, or obtain a supplemental policy. Platforms like Airbnb and VRBO typically provide host protection insurance, but this does not replace the city's requirement for the host to maintain their own coverage. The license application requires proof of insurance. The 4% Shared Housing Surcharge and 4.5% Hotel Accommodation Tax also apply to all bookings of 29 nights or fewer.
Operating without required insurance can result in license revocation and fines of $1,500 to $5,000. Intermediary platforms that fail to maintain required insurance face fines of $5,000 per violation per day.
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Side-by-side rule comparisons with other cities in Cook County.
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