Hoover, AL Short-Term Rentals: Insurance Requirements (2026)

6. That coverage must take one of two forms: a rider on a homeowner's policy that expressly covers short-term rentals and provides a minimum of $1,000,000 in liability and personal injury coverage, or a commercial insurance policy covering short-term rentals at the permitted address with the same $1,000,000 minimum. Either way, the policy must state it will not terminate or be cancelled before the current permit period ends without thirty days' written notice sent to the City of Hoover, Attn: City Clerk, 100 Municipal Lane, Hoover, Alabama 35210.

This insurance certificate sits alongside the other documents required under Section 6-55(1)d: a copy of the applicant's driver's license or government ID, proof of ownership or the legal right to possess the property, a list of hosting platforms used to advertise the unit, a parking survey showing allotted spaces, and a floorplan identifying the bedrooms used for rentals. Under Section 6-55(1)e, the planning and zoning director issues the permit only after reviewing this full document package, including the insurance certificate, and Section 6-55(1)f requires the operator to continuously maintain every requirement, insurance included, for the entire permit period; any fraud or misrepresentation in the required documentation is grounds for immediate suspension or revocation by the City Council.