Franklin, TN Short-Term Rentals: Insurance Requirements (2026)
Key Facts
- Minimum liability coverage
- $1,000,000 per occurrence
- Coverage type
- Homeowner's fire, hazard, and liability
- Proof filed with
- Building and Neighborhood Services (BNS)
- Filing frequency
- Annually
- Duration required
- Continuous while STVR operates
Summary
Franklin requires every short-term vacation rental owner to carry homeowner's fire, hazard, and liability insurance with liability limits of at least $1,000,000 per occurrence, proven annually to Building and Neighborhood Services under Sec. 13-204. Coverage must stay continuous for as long as the STVR operates, and it's one of several conditions, alongside the certificate of use and occupancy, tied to keeping the permit active.
Proof of insurance evidencing homeowner's fire, hazard, and liability insurance shall be presented annually to the building and neighborhood services (BNS) department. Liability coverage shall have limits of not less than $1,000,000.00 per occurrence. This coverage shall be continuous while the STVR is in operation.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 30 Update 1).
Full Breakdown
00 per occurrence, and that this coverage shall be continuous while the STVR is in operation. The insurance duty is annual and ongoing, not a one-time filing at initial application: an owner must resubmit proof every year and cannot let the policy lapse while renting the unit out. It runs alongside the STVR's other owner obligations in title 13, chapter 2: Sec. 13-203 makes the owner responsible for STVR compliance generally and requires a locally based responsible party within 25 miles who addresses maintenance and safety concerns around the clock; Sec.
13-202 requires the certificate of use and occupancy that the insurance proof supports; and Sec. 13-214 requires the whole STVR application, insurance included, to be renewed every 365 days with the fee set in Appendix A. Because insurance proof is a condition of holding a valid STVR certificate rather than a stand-alone filing, a lapse discovered by BNS, including through the complaint process under Sec. 13-216, exposes the owner's certificate of use and occupancy to enforcement, not merely a private insurance gap.
Violations & Fines
Operating an STVR without current proof of $1,000,000 liability coverage on file with BNS violates Sec. 13-204 and puts the certificate of use and occupancy at risk. BNS can act on a lapse discovered through its own review or through the complaint process under Sec. 13-216, and confirmed STVR violations can lead the board of mayor and aldermen to revoke the right to operate the rental.
Frequently Asked Questions
How much liability insurance does a Franklin STVR need?
Do I file STVR insurance proof once or every year in Franklin?
What happens if a Franklin STVR's insurance lapses?
Sources & Official References
Other rules in Franklin
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