Horn Lake, MS Short-Term Rentals: Insurance Requirements (2026)

Short-term rental hosts in Southaven, Olive Branch, Horn Lake, and Hernando are generally required to provide a Certificate of Insurance (COI) at business license application showing minimum $500,000 to $1,000,000 per-occurrence general liability coverage naming the host (and any LLC) as insured. Standard Mississippi homeowner policies under ISO HO-3 form exclude regular or frequent business/rental use beyond 2-3 room rentals per year, so most STR operators need either a commercial dwelling policy, a landlord policy with short-term rental endorsement (Proper Insurance, CBIZ, Farmers NextHome, Allstate HostAdvantage), or a commercial package policy. Airbnb's $1M AirCover Host Liability and VRBO's $1M Liability Insurance are secondary and do not satisfy local primary-coverage requirements. Flood insurance via the NFIP or a private carrier is strongly recommended for STRs near the Coldwater River, Horn Lake Creek, Hurricane Creek, or in any FEMA A or AE zone. DeSoto County is in FEMA Region 4; Nonesuch Creek flooding affects portions of Southaven. Workers' comp is required if host has paid cleaning staff (MS statutory minimum 5 employees, but best practice at any level).