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

Montgomery County STR licensing under Chapter 54 requires hosts to maintain adequate insurance coverage for short-term rental operations. The license application includes a self-certification that the host carries either a homeowner or renter insurance policy that covers short-term rental activity, a separate short-term rental insurance policy, or relies on host protection coverage provided by the listing platform. Standard homeowner insurance policies typically exclude commercial hosting activity — renting to paying guests may void coverage for claims arising during a guest stay. Hosts should contact their insurance carrier to confirm their policy covers STR use or purchase supplemental STR insurance. Major platforms like Airbnb provide Host Protection Insurance (up to $1 million liability) and AirCover for property damage, but these are secondary to the host own policy and have exclusions. Hosts are strongly advised to carry at least $1 million in liability coverage. Failure to maintain insurance as certified on the license application may result in license revocation.