Oak Park, IL Short-Term Rentals: Insurance Requirements (2026)
Key Facts
- Minimum coverage
- $500,000.00 homeowner's or host protection insurance (§ 8-40-5(D))
- When proof is due
- Submitted with the license application (§ 8-40-5(D))
- Applies to
- Owner-occupied and non-owner-occupied rentals alike (§ 8-40-5)
- Consequence of noncompliance
- License cannot lawfully issue or renew (§ 8-40-3)
Summary
Before the Village of Oak Park issues a short-term rental license, the owner must show proof of homeowner's insurance or host protection insurance covering at least $500,000.00. Section 8-40-5(D) makes that coverage part of the license application itself, not an optional add-on.
8-40-5: STANDARDS: ... In addition to the requirements set forth in article 1 of this chapter, no license shall be issued unless the following standards are met: ... ... D. The owner must provide proof of homeowner's insurance or host protection insurance in the amount of at least five hundred thousand dollars ($500,000.00) to the Village as part of its application;
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-9: Code current through: Ord. 26-159, passed - -2026).
Full Breakdown
Section 8-40-5 of the Oak Park Village Code lists the standards an owner must meet before the Village will issue a short-term rental license under article 40. 00 to the Village as part of the application, so the coverage has to be documented before licensing rather than only carried informally. The insurance standard sits alongside the article's other application-stage requirements: subsection A requires marketing through a hosting platform, and section 8-40-3's requirement that the Village inspect and approve the premises before any license issues or renews.
00 insurance proof cannot lawfully obtain or renew the license needed to operate a short-term rental in the Village at all. The insurance requirement applies uniformly to owner-occupied and non-owner-occupied short-term rentals alike; the Village Code does not vary the coverage amount by occupancy type the way it varies the license fee in section 8-40-4.
Violations & Fines
Operating or renewing a short-term rental license without the $500,000.00 insurance proof required by section 8-40-5(D) means the license cannot lawfully issue under section 8-40-3's inspection-and-standards gate; operating anyway is a violation of article 40 fined under section 8-40-7 at $200.00 for a first offense, $500.00 for a second, and $750.00 for a third or subsequent offense, each day counted separately.
Frequently Asked Questions
How much liability insurance does an Oak Park short-term rental need?
Does the insurance requirement apply to owner-occupied short-term rentals too?
Can I get an Oak Park short-term rental license without proof of insurance?
Sources & Official References
Other rules in Oak Park
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