Lakewood, CO Short-Term Rentals: Insurance Requirements (2026)

Under LMC Title 5, Chapter 5.55 and its implementing application materials, every Lakewood short-term rental applicant must provide proof of insurance that covers the proposed licensed premises for use as a short-term rental, adequately covers short-term rental liability, and in no event is less than $500,000. This figure is set lower than Denver's $1,000,000 standard but still sits well above what most stock homeowner's policies provide for transient lodging activity, so hosts typically need a dedicated short-term rental policy or a homeowner's endorsement. Standard homeowner's policies commonly exclude commercial or transient-lodging use, so notifying the carrier that the home is being rented short-term is a practical necessity to avoid claim denials. Because Lakewood's STR program is home-share-only, the policy must reflect that the owner continues to occupy the home while renting individual rooms. Proof of coverage is part of the licensing record and must be re-confirmed at renewal; the City Clerk's Office can request updated documentation during the license term.