Massachusetts law requires STR operators to maintain at least 1 million dollars in liability insurance per MGL c.64G s.14, covering each rental transaction in Newton.
Under Massachusetts General Laws Chapter 64G Section 14, every short-term rental operator in Newton must carry liability insurance of at least 1,000,000 dollars covering each rental transaction, unless the STR is offered through a hosting platform (like Airbnb) that provides equal or greater coverage. The coverage must defend against bodily injury and property damage claims arising from the STR activity. A standard homeowners or renters policy typically excludes commercial lodging, so operators should obtain a short-term rental endorsement or a specialized STR policy from carriers like Proper Insurance, Safely, or CBIZ. Proof of insurance must be maintained and provided on request to the state registry and can be requested by the city. Failure to maintain insurance is a violation of state law and can result in fines and loss of registration. Condominium unit owners should also verify STR is allowed in their master deed before rentin.
Contact your local code enforcement office for specific penalty information.
Newton, MA
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