Commerce City, CO Short-Term Rentals: Insurance Requirements (2026)

Section 9-3902(c) sets out everything a short-term rental license application must contain, and paragraph (4) of that subsection requires proof of liability insurance for the short-term rental unit with a minimum of five hundred thousand dollars in coverage, on top of documentation of the rental's address, proof of possession by warranty deed, lease or other verification of the right to occupy the premises, and an affirmation that the applicant already gave the required notice to adjoining owners and residents under section 9-3906. Section 9-3902(d) requires the applicant to self-certify under penalty of perjury under Colorado law that everything in the application, including the insurance proof, is accurate and truthful.

The insurance requirement is not a one-time hurdle: because licenses run for only one year under section 9-3903, and a renewal application must include copies of the prior year's required records under section 9-3910, an owner effectively has to maintain and be ready to re-document the five-hundred-thousand-dollar policy at every renewal. Section 9-3904 separately makes the property owner ultimately liable for compliance with the whole division, so letting the policy lapse during the license term is the owner's exposure even if a management company or booking platform is handling day-to-day operations.