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

City Code Section 3-23-5(a)(5) requires every applicant for a short-term primary-rental license to maintain liability insurance covering use of the rental, in an amount the insuring company determines appropriate but never less than five hundred thousand dollars. The Finance Director reviews insurance as part of the licensing file, and Section 3-23-7(b)(5) lists an applicant's failure to obtain or maintain appropriate insurance as good cause to deny a license application outright. Once a license issues, Section 3-23-9(e) keeps the obligation running: it is an unlawful act to operate a short-term rental without fire, hazard and liability insurance within the coverage limits the Finance Director has set, and Section 3-23-10(a)(17) repeats the duty as a standing license condition, requiring the licensee to maintain the required insurance at all times the license remains valid.

Because the requirement sits in three separate sections spanning application, denial and ongoing operation, the City treats a lapse in coverage as grounds to deny a renewal, suspend an existing license, or issue a Notice to Show Cause under Section 3-23-8(e), not merely a paperwork defect caught at intake.