Lakewood, CO Short-Term Rentals: Insurance Requirements (2026)
Key Facts
- Minimum liability coverage
- $500,000
- Governing chapter
- LMC Ch. 5.55, adopted 2023
- Required at
- New application and renewal
- Reviewing office
- City Clerk
- Missing proof consequence
- Application denied as incomplete
Summary
Lakewood requires every short-term rental license applicant to submit proof of liability insurance covering the property's use as an STR, in an amount no less than $500,000. The proof is one of a dozen items the City Clerk's office checks before an application is deemed complete.
No application shall be deemed complete unless accompanied by the following:1.The full name and phone number of all Owners of the premises, and designation of the Owner/Applicant.2.The address of the proposed Licensed Premises and a description or illustration of the area(s) of the premises that will be used for STR purposes.3.Proof of insurance that covers the proposed Licensed Premises for use as an STR, which adequately covers the short term rental liability and in no event is less than $500,000.00.4.A copy of an inspection report, in accordance with § 5.55.050, signed and dated by the Inspector within 30 days of the application for license.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Municipal Code: Supplement 14 | Zoning Ordinance: ?).
Full Breakdown
55, adopted by Ord. O-2023-5 in 2023, an owner applying for a new or renewed Short-Term Rental license must file a complete application packet with the City Clerk. 050), a notarized affidavit that renters will be told about City noise, parking and garbage rules, proof of a City sales/use tax license, and a hotel/motel accommodations tax license. The City Clerk must reject any incomplete application outright and cannot act on it further until it is corrected. Renewal applications, due at least 45 days before the December 31 expiration, must be accompanied by the same supporting materials the Clerk deems necessary, which in practice includes a current insurance certificate. 070(A)(8).
Violations & Fines
An application missing the $500,000 insurance proof is not "complete in every detail" and the City Clerk must return or deny it (§ 5.55.030(B), § 5.55.060(A)(1)). For an already-licensed STR, a failure to maintain conforming insurance can support a show-cause hearing to suspend or revoke the license (§ 5.55.070(A)(8)), with penalties set under § 5.55.080(C) ranging from probation to a civil fine to license revocation.
Frequently Asked Questions
How much liability insurance does a Lakewood STR need?
When do I have to show proof of insurance?
What happens if my STR insurance lapses?
Who reviews the insurance documentation?
Sources & Official References
Other rules in Lakewood
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