Red Bank, NJ Short-Term Rentals: Insurance Requirements (2026)

Unlike most New Jersey municipalities, Red Bank Borough imposes a specific liability-insurance minimum on short-term rental hosts. Chapter 559 of the Borough Code, adopted on 5-23-2024 by Ordinance No. 2024-23, requires applicants to provide proof of general liability insurance at a minimum amount of $500,000, attached to and concurrent with the STR permit application submitted to the Red Bank Fire Marshal's Office. The $500,000 floor is a local requirement; New Jersey has no statewide STR insurance mandate, and STR-related state legislation (NJSA 54:32D, the 5% State Occupancy Fee plus 6.625% Sales Tax for a 11.625% combined platform-collected rate) addresses taxation rather than insurance. Most operators rely on a dedicated short-term rental policy or add a STR endorsement because standard New Jersey homeowner policies typically exclude commercial rental activity. Airbnb's AirCover for Hosts and Vrbo's Liability Coverage (each up to $1,000,000 per occurrence on covered platforms) provide secondary protection but do not replace the primary $500,000 policy required for the borough permit. Confirm the current minimum and acceptable certificate format with the Fire Marshal's Office at 732-530-2700.