Prescott Valley, AZ Short-Term Rentals: Insurance Requirements (2026)

Paragraph I of section 13-08-090 of the Prescott Valley Town Code sets the insurance rule for vacation rentals and short-term rentals in the Town of Prescott Valley, Arizona. The rental shall maintain liability insurance appropriate to cover the rental in the aggregate of at least $500,000. The alternative is to advertise and offer each rental through an online lodging marketplace that provides equal or greater coverage. The $500,000 figure is an aggregate amount, and the paragraph names no per-occurrence limit.

The rule sits beside the licensing scheme. Paragraph F requires the owner to obtain and maintain a Town vacation rental license, and the application asks for the owner or agent's contact details, the rental address, proof of compliance with A.R.S. § 42-5005, the 24-hour emergency contact, an acknowledgment of an agreement to comply with all applicable laws, regulations and ordinances, and the applicable fee. Read literally, the list in paragraph F does not itself ask for a certificate of insurance, and the denial grounds in paragraph J do not mention insurance. The coverage duty in paragraph I is a standing condition of operating, not a document filed at application.

The definition in paragraph S covers any individually or collectively owned single-family or one-to-four-family house or dwelling unit, or any unit or group of units in a condominium or cooperative, that is a transient public lodging establishment or an owner-occupied residential home offered for transient use. A unit used for any nonresidential use, including retail, restaurant, banquet space or an event center, is not a short-term rental under that definition.

Town Council Ordinance No. 2024-947 enacted the section on 12/11/2024, and Ordinance No. 2026-979 amended it on 05/28/26.