Clarksville, TN Short-Term Rentals: Insurance Requirements (2026)

Title 5, Chapter 3 of the Clarksville City Code regulates short-term rentals but stops short of imposing a numeric liability insurance minimum like the $500,000-$1,000,000 figures seen in some other Tennessee jurisdictions. Section 5-304(a)(6) (Confirmation regarding private agreements) requires the Owner, when applying for an Operating Permit, to acknowledge in writing that operating the Short-Term Rental Unit will not violate any insurance contract or other private agreement governing use of the property. Section 5-306 (Renewals) then requires the renewal application to include 'an updated proof of insurance' along with updated affidavits and proof of all taxes due. Section 5-310 explicitly states that the City has no duty to enforce private insurance contracts or HOA covenants. Hosting platforms such as Airbnb's Host Liability Insurance and AirCover, plus Vrbo's Liability Insurance, may satisfy the renewal proof-of-insurance requirement, but operators should confirm their homeowner's policy permits transient rental use - many standard policies exclude commercial activity, and a separate STR endorsement or commercial policy is often needed. Tennessee state law (T.C.A. §13-7-602 et seq., the Short-Term Rental Unit Act) does not preempt local insurance requirements but limits how cities can regulate properties already used as STRs before local rules took effect.