Herndon, VA Short-Term Rentals: Insurance Requirements (2026)

Unlike some Virginia localities (such as Virginia Beach), the Town of Herndon's short-term rental program does not require operators to carry a specific minimum amount of commercial liability insurance as a condition of registration. The operative authorities - Town Code Chapter 11 (Short-Term Rental Registration), Section 78-80.4(u) of the Zoning Ordinance, and Virginia Code Sec. 15.2-983 - focus on registration, occupancy, parking, taxes, and nuisance controls rather than insurance. Virginia Code Sec. 15.2-983 expressly authorizes localities to operate a short-term rental registry but does not itself require operators to maintain liability insurance. Even though the town does not set a minimum, operators should not rely on a standard Virginia homeowner's (HO-3) or condominium (HO-6) policy alone, because most ISO-based residential policies exclude or sharply limit coverage for regular business or rental activity at the dwelling. Practical options used by Herndon hosts include: (1) adding a short-term rental or home-sharing endorsement to an existing homeowner policy if the carrier offers one; (2) purchasing a dedicated short-term rental or commercial dwelling policy; or (3) relying on a host protection program from the booking platform (for example Airbnb's AirCover or VRBO's liability coverage), recognizing that these programs typically have exclusions, sub-limits, and only respond to certain claims. Townhome and condominium operators must additionally check the master deed and HOA / COA insurance rules: many associations in the Herndon area require an HO-6 with specific liability minimums, and some associations require unit owners to add the association as an additional insured before allowing any rental activity. Town Code Chapter 11 also requires HOA / COA notification at the time of registration, so operators should treat that step as the trigger for verifying that their coverage matches whatever the association requires. Guests are not required to carry their own insurance under Herndon law.