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

Title 3, Chapter 23 of the Littleton City Code, adopted via Ordinance No. 41, Series 2020, declares it unlawful to operate a short-term rental without fire, hazard, and liability insurance. This three-pronged requirement is broader than a simple liability mandate: the policy must address fire damage, general property hazards, and third-party liability for injuries arising from the rental activity. Littleton does not publish a single statutory minimum dollar amount on its public STR pages, so applicants should confirm the required limits with the City's Business Licensing office (the department that issues the $25 annual STR license) before submitting. Standard homeowners policies usually exclude commercial activity, including paid short-term rentals; most operators therefore obtain an STR-specific endorsement, a landlord/dwelling policy with STR coverage, or a dedicated commercial policy. Platform-provided coverage such as Airbnb's AirCover or Vrbo's Liability Insurance is supplemental and does not necessarily satisfy the City's stand-alone requirement. Coverage must remain continuously active during the license term; lapses can lead to license suspension, revocation, or denial of renewal. Colorado HB23-1287 addresses lodging tax obligations but does not preempt local insurance requirements.