North Chicago, IL Short-Term Rentals: Insurance Requirements (2026)

Neither the North Chicago Zoning Ordinance (updated November 18, 2024) nor Title 5, Chapter 14 (Landlord Licensing) of the Code of Ordinances contains a stand-alone short-term rental insurance requirement. The Department of Economic and Community Development administers the landlord license process and may, as part of a Special Use Permit issued under Article 5 or a Conditional Use determination under Section 8.4, attach insurance conditions on a case-by-case basis pursuant to Section 8.4.2.7 (Conditions and Guarantees of Special Use). At the state level, Illinois has no statute setting a numeric minimum liability limit for STRs; the Illinois Hotel Operators' Occupation Tax Act, 35 ILCS 145, is a tax statute and does not impose insurance limits, and short-term rental operators in Illinois are generally subject to that hotel tax when renting a unit for fewer than 30 consecutive days. North Chicago hosts typically rely on Airbnb Host Liability Insurance or Vrbo Liability Coverage, each of which provides up to $1,000,000 per occurrence on covered platforms, paired with a homeowner or landlord policy endorsed for short-term rental activity, because most standard Illinois homeowner policies exclude commercial or transient-rental use. Hosts should also confirm that any HOA or condominium declaration applicable to the unit does not impose its own STR insurance minimum.