Lake Havasu City, AZ Short-Term Rentals: Insurance Requirements (2026)

City Code § 5.20.025(B)(8) requires a vacation rental permit application to include evidence of liability insurance covering the property in the aggregate of at least $500,000, or evidence that every booking will run through a platform, such as an online lodging marketplace, that itself carries equal or greater primary liability coverage for that stay. Section 5.20.050(M) repeats this as an ongoing operational requirement: an owner must either maintain the $500,000 policy directly or advertise and book exclusively through a marketplace providing equal or greater coverage.

The insurance requirement sits alongside the chapter's other mandatory application items, the property address, owner and emergency contact information, proof of a valid Arizona transaction privilege tax license, and the neighbor-notification attestation, so Development Services can confirm coverage before issuing the permit within the 7-business-day review window set by § 5.20.025(C). Because the requirement is tied to both the initial application and continuing operation, a lapse in coverage during the permit's 1-year term is a basis for suspension or revocation. Owners who rely on a booking platform's coverage rather than their own policy still bear responsibility for verifying that the platform meets the equal-or-greater standard, since the chapter places compliance obligations on the owner regardless of how the coverage is obtained.