Elizabeth, NJ Short-Term Rentals: Insurance Requirements (2026)

Under Chapter 5.90 of the Code of the City of Elizabeth, enacted as Ordinance 5424, the Bureau of Central Licensing will not issue or renew an annual short-term rental license without proof of general liability insurance that specifically covers the short-term rental use of the property, with $500,000 minimum general liability coverage required at the time of application. Acceptable proof is a certificate of insurance naming the insured property and identifying the carrier, policy number, coverage limits, and effective and expiration dates. The annual license fee is $200 and runs alongside the city's other STR conditions: a rental Certificate of Occupancy from the Bureau of Planning and Zoning, a Fire Prevention Bureau certificate, owner contact information, the property's block-lot-unit numbers, and a floor plan showing each sleeping room. Insurance must remain in force for the duration of the license; lapses are grounds for suspension or non-renewal. Many standard New Jersey homeowners and condominium policies exclude or sharply limit coverage for transient or commercial short-term rental activity, so hosts typically need a commercial-style short-term rental policy or a homeowners endorsement to satisfy Chapter 5.90. The supplemental host-protection programs offered by Airbnb (AirCover) and Vrbo (Liability Insurance) operate as secondary coverage subject to platform terms and exclusions, and do not replace the primary general liability certificate Elizabeth requires on file. Beyond the city license, transient accommodations rented through a marketplace or by a professionally managed operator are also subject to the New Jersey 5% State Occupancy Fee (N.J.S.A. 54:32D-1) and 6.625% Sales Tax (N.J.S.A. 54:32B-3), and Elizabeth imposes a 6% municipal hotel-occupancy tax, all of which are separate from the insurance condition.