New Orleans, LA Short-Term Rentals: Insurance Requirements (2026)

The New Orleans CZO Section 20.3.PP requires STR operators to maintain commercial general liability insurance covering the operation of the STR. The minimum required limit is generally $500,000 per occurrence, and proof of coverage must be submitted to the Department of Safety and Permits at the time of application and at each annual renewal.

Standard homeowner or condo policies typically exclude business activity, including short-term rentals, so operators usually need to purchase a separate STR or commercial endorsement. Major STR-focused insurance products are widely available, and host protection coverage offered by platforms such as Airbnb and Vrbo can provide additional protection but is generally considered supplementary, not a replacement for the required commercial liability policy.

In flood-prone New Orleans, operators should also consider whether their property carries adequate flood insurance through the National Flood Insurance Program (NFIP) or a private carrier. While flood insurance is not strictly required by the STR ordinance, it is often required by mortgage lenders for properties in Special Flood Hazard Areas, which cover much of the city. Operators should also evaluate windstorm and named-storm coverage given the hurricane risk along the Gulf Coast.