Montgomery County, MD Short-Term Rentals: Insurance Requirements (2026)

Montgomery County Code Chapter 54 addresses insurance as part of the STR licensing process. Operators are expected to maintain liability insurance that covers short-term rental activity, as standard homeowner insurance policies typically exclude commercial hospitality use. Many insurers now offer host protection or STR-specific riders that supplement standard policies. Booking platforms like Airbnb provide limited host protection programs, but these have exclusions and should not be relied upon as primary coverage. The county may require proof of insurance as part of the license application or renewal. Liability coverage should address guest injuries on the property, property damage by guests, and third-party claims. Maryland law regarding landlord liability also applies to STR operations. Operators in HOA communities should verify that their HOA master policy does not prohibit or restrict STR use, as many HOAs in Bethesda, Potomac, and Germantown have adopted STR-related covenants. Adequate insurance protects both the operator and neighboring properties from STR-related incidents.