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

Unlike Mesa, Memphis, or Fort Worth, the City of Peoria does not require a specific minimum liability insurance amount as a condition of issuing the annual Short-Term Rental License. The application requires owner identification, an emergency contact, zoning verification, and tax registration through the HostCompliance portal, but does not require an insurance certificate. Despite the absence of a city mandate, operators face significant private-insurance risk: most standard homeowners insurance and landlord (DP-1/DP-3) policies in Illinois contain a 'business use' exclusion that voids coverage for losses arising from rentals of fewer than 30 days. To close this gap, Peoria STR operators commonly purchase one of three options: (1) a dedicated short-term rental policy from carriers such as Proper Insurance, Steadily, or CBIZ that provides commercial general liability (typically $1,000,000 per occurrence and $2,000,000 aggregate) plus building and contents coverage; (2) a short-term rental endorsement riding on an existing homeowners or landlord policy where the carrier offers one; or (3) a commercial liability policy paired with a separate property policy. Airbnb's Host Liability Insurance offers up to $1,000,000 in third-party liability coverage and AirCover for Hosts adds up to $3,000,000 in host damage protection, but both are explicitly secondary, may exclude certain claim types (intentional acts, communicable disease, certain personal injury), and do not extend to bookings outside Airbnb. Mortgage lenders, condominium associations, and HOA covenants frequently impose their own insurance requirements that exceed the city's silence. Where the property operates under a Special Use Permit, the Zoning Commission may attach an insurance condition specific to that approval.