New Bedford, MA Short-Term Rentals: Insurance Requirements (2026)

New Bedford STR hosts face a two-layer insurance regime. First, the statewide mandate added by Chapter 337 of the Acts of 2018 and codified at MGL c.175, §4F(b) requires every operator to maintain liability insurance of not less than $1,000,000 to cover each short-term rental, unless that rental is offered through a hosting platform that maintains equal or greater coverage. The coverage must defend and indemnify the operator and any tenants or owners in the building for bodily injury and property damage arising from the short-term rental. Standard Massachusetts homeowner (HO-3) and condominium (HO-6) policies typically exclude business or short-term rental activity, so most New Bedford hosts either add a short-term rental endorsement to their homeowner policy or carry a dedicated landlord/STR policy that meets the $1M per-stay threshold. Major platforms satisfy the carve-out: Airbnb's AirCover Host Liability Insurance and Vrbo's Liability Insurance both publish $1,000,000 per-occurrence limits. Second, the City of New Bedford's Chapter 9, Section 3400 STR ordinance independently requires hosts to demonstrate adequate insurance as part of the local registration documentation, alongside proof of residency, a business certificate, and neighbor notification. Operators are also required, under MGL c.64G, §6 and MGL c.62C, §67, to register with the Massachusetts Department of Revenue Short-Term Rental Registry, and Section 13 of c.64G obligates intermediaries (Airbnb, Vrbo) to verify operator registration before listing the property. The state Room Occupancy Excise (5.7%), the local option excise (up to 6%), and a community impact fee (up to 3%) attach to the rental price under MGL c.64G.