Dutchess County, NY Short-Term Rentals: Insurance Requirements (2026)

New York has no statewide STR insurance mandate; requirements are set locally. Village of Rhinebeck, Town of Rhinebeck, Town of Red Hook, Town of Stanford, and Town of Washington (Millbrook) STR ordinances typically require $1,000,000 general liability minimum with the municipality named as additional insured on a certificate of insurance (COI) filed at permit application. Operators must maintain coverage throughout the permit year and submit updated COIs upon renewal. Airbnb's AirCover for Hosts (formerly Host Protection) provides $1M liability but several Dutchess town attorneys have found it insufficient because it is a secondary/excess coverage only triggered after host's own policy and has specific exclusions. VRBO's $1M liability is similar. Most host insurers (Proper, Slice, CBIZ) offer dedicated STR commercial policies that meet municipal requirements. Standard homeowners policies (from carriers like State Farm, Allstate, Liberty Mutual) typically exclude commercial short-term rental activity, creating a coverage gap if host relies on homeowners alone. Mortgage lenders and HOAs may add further insurance requirements.