Fort Collins, CO Short-Term Rentals: Insurance Requirements (2026)

Under Municipal Code Sec. 15-644(a)(5), an applicant for a short term primary rental license "must maintain and provide proof of liability insurance sufficient to compensate renters for injuries that may be sustained in the dwelling unit proposed to be rented within the coverage limits established in administrative regulations adopted pursuant to Sec. " Sec. 15-644(b)(5) imposes the identical mandate on short term non-primary rental applicants. The Financial Officer and the Director of Community Development and Neighborhood Services jointly write the coverage-limit regulations under Sec. 15-651, so the actual dollar threshold lives in an administrative rule rather than the ordinance text itself.

The insurance obligation does not end at licensing: Sec. 15-648(7) requires that "the licensee shall maintain insurance as specified in Sec. 15-644 at all times during which the license is valid," turning lapsed coverage into an ongoing compliance failure rather than a one-time application defect. The Director can inspect licensed premises at any time to verify continuing compliance with licensing requirements, per Sec. 15-649(d), and a locked area of the premises must be opened for inspection without delay on request. Because insurance sits inside the licensing requirements of Sec. 15-644, letting the policy lapse triggers the same suspension, revocation or non-renewal exposure as any other licensing failure under Sec. 15-649(a)(3).