Reading, PA Short-Term Rentals: Insurance Requirements (2026)

Neither the Reading City Code nor the Berks County hotel-tax ordinance imposes an insurance requirement on STR operators. Pennsylvania has not legislated a statewide STR insurance floor, so coverage is governed entirely by contract: the host's homeowner's or landlord policy, the rental platform's host-protection program, and any condo or HOA master policy. The major risk for hosts is that a standard Pennsylvania HO-3 homeowner's policy contains a 'business pursuits' exclusion that voids coverage for property damage and liability arising out of a rental for compensation - including a single Airbnb booking. Hosts should either (1) endorse a 'home-sharing' or short-term-rental rider onto the HO-3, (2) move to a commercial Landlord Dwelling policy (DP-3) plus a Hosted Lodging endorsement, or (3) purchase a dedicated STR policy from a specialist carrier (Proper, Slice, CBIZ). Platform protection programs are secondary, not a substitute: Airbnb AirCover provides up to $1,000,000 liability and $3,000,000 host damage but only for losses caused by the verified booking guest and only when filed through Airbnb; VRBO's Liability Insurance is similar. Reading's Landlord Business Privilege License application does not require proof of insurance, but the City's Risk Management department recommends a $1M general-liability minimum, and Berks County mortgage and condo associations often impose insurance requirements via private contract.