Memphis, TN Short-Term Rentals: Insurance Requirements (2026)
Key Facts
- Minimum coverage
- $1,000,000 per occurrence
- Coverage types
- Fire, hazard, and liability
- Reviewed by
- City of Memphis Division of Public Works
- Timing
- Required at filing and must stay current
- Applies per
- Each individually permitted rental unit
Summary
Memphis requires every short-term rental permit applicant to prove at least $1,000,000 in fire, hazard, and liability coverage before the city will issue a permit. City Code § 5-44-5(C)(4) makes the verification part of the mandatory application package reviewed by Public Works.
C.Short term rental property permits required by this article shall be applied for and renewed electronically or in writing, on such forms as the division of public works may prescribe which forms shall include: ... 4.Verification of insurance evidencing fire, hazard, and liability coverages of not less than $1,000,000.00 per occurrence;
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 32 | Charter: Supplement 4).
Full Breakdown
00 per occurrence. That figure sits alongside the other required disclosures in the same subsection: the unit's maximum transient capacity and site plan, the owner's pledge not to interfere with neighbors' quiet enjoyment, proof of current ownership, a compliance verification form for building, health, and life-safety codes, acknowledgment that the applicant has read the ordinance, disclosure of citations issued against the property in the prior 12 months, and identification of a responsible party living within 50 miles who can respond to complaints. The insurance verification is reviewed alongside those documents before the Division of Public Works issues a permit, and § 5-44-5(G)(2) conditions issuance on the operation contemporaneously complying with the ordinance and its required insurance coverages, meaning a lapse in the $1,000,000 policy can block issuance or renewal, not just the initial filing.
The requirement applies per unit, an owner with more than one qualifying short-term rental must document coverage, along with every other application item, separately for each permitted property under § 5-44-5(A).
Violations & Fines
An applicant who cannot verify the $1,000,000 fire, hazard, and liability coverage cannot receive a permit: § 5-44-5(G)(2) conditions issuance on the operation contemporaneously meeting the ordinance's insurance coverages, so the Division of Public Works withholds or can revoke the permit until proof of the required policy is on file.
Frequently Asked Questions
How much liability insurance does a Memphis short-term rental need?
Can I keep a Memphis short-term rental permit without maintaining insurance?
Is the insurance requirement the same for every short-term rental owner?
Sources & Official References
Other rules in Memphis
Compare Memphis to another location·View the Tennessee short-term rentals overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.