Jefferson County, KY Short-Term Rentals: Insurance Requirements (2026)

Under Louisville Metro's STR ordinance at LMCO Chapter 115A and LDC 4.2.62, every registered short-term rental operator must maintain a minimum of $1,000,000 in general liability insurance coverage specifically covering short-term rental activity. A certificate of insurance (COI) naming the property address must be submitted with the initial STR registration application and uploaded at each annual renewal. Standard homeowners policies typically exclude commercial/transient rental activity, so hosts usually need either an endorsement/rider to their HO-3 policy or a dedicated STR policy (such as Proper Insurance or CBIZ). Platform-provided insurance such as Airbnb's AirCover ($1M host liability) or Vrbo's Liability Insurance may satisfy the Louisville Metro requirement only if the coverage meets the $1M threshold and names the operator; operators should verify with the STR Compliance Office. Kentucky operators must also collect and remit the 6% state sales tax, 1% state transient room tax, and Louisville/Jefferson County transient room tax (currently 8.5%) under KRS 142.400 and local ordinance.