Dane County, WI Short-Term Rentals: Insurance Requirements (2026)

Wisconsin regulates short-term rentals as tourist rooming houses under Wis. Stat. §97.605 and Wis. Admin. Code ATCP 72, administered by DATCP (or by Dane County/Madison as agent inspection authorities). Neither the state nor Dane County Code sets a minimum liability policy amount, but Wis. Stat. §66.1014 allows municipalities to require licensing, and Madison (MGO §32.03) and Fitchburg require proof of insurance on the Tourist Rooming House application. Industry practice is $500,000 to $1,000,000 per occurrence. Wisconsin OCI Bulletin guidance warns that standard homeowner HO-3 policies exclude business pursuits and short-term rental activity, so hosts usually need a commercial dwelling, landlord (DP-3), or STR-specific endorsement. Platform coverage (Airbnb AirCover, VRBO Liability Insurance) is excess-only and does not replace primary coverage. Failure to maintain coverage can result in permit denial, revocation under MGO §32.05, and personal liability for guest injuries on Yahara lakefront properties where drowning and boating claims are common.