Durham, NC Short-Term Rentals: Insurance Requirements (2026)

Durham requires short-term rental operators to carry adequate liability insurance as a condition of obtaining and maintaining their business license. The minimum coverage standard is $1 million per occurrence in general liability insurance. This requirement protects both guests and neighboring property owners from potential injury or property damage claims arising from short-term rental operations. Hosts must submit proof of insurance coverage with their initial licensing application and again at each annual renewal. Standard homeowner insurance policies typically do not cover commercial short-term rental activity, so hosts need to either add a specific STR endorsement to their existing homeowner policy or obtain a separate commercial liability policy. Many hosting platforms such as Airbnb offer supplemental host protection insurance programs, but Durham requires hosts to maintain their own independent coverage rather than relying solely on platform-provided programs. The insurance policy must name the property address used for short-term rental operations and must be issued by a carrier licensed to operate in North Carolina. Hosts should also consider additional coverage for property damage, loss of rental income, and guest medical payments beyond the minimum liability requirement. Failure to maintain valid insurance coverage can result in license suspension until proof of renewed coverage is provided. Durham recommends that hosts consult with a licensed insurance agent familiar with North Carolina short-term rental operations to ensure adequate protection.