Rio Rancho, NM Short-Term Rentals: Insurance Requirements (2026)

Rio Rancho's Chapter 123 requires every permitted short-term rental unit to carry insurance, and proof of that coverage is a mandatory part of the permit application. The minimum required is $250,000 of coverage per short-term rental unit, and the policy must specifically cover short-term rental operations (not merely a standard homeowner's policy). Operators submit proof of this insurance in Step 1 of the application alongside property details, the designated responsible party, the site plan, and the $100 application fee. Because coverage is verified up front, a permit will not be issued without acceptable proof of qualifying STR insurance. Maintaining the coverage is an ongoing condition of operating; a lapse would put the operator out of compliance with the chapter. This is a city requirement specific to Rio Rancho STRs; New Mexico state law does not set a statewide STR insurance minimum, so the $250,000-per-unit floor is a municipal standard adopted with the 2024 ordinance effective July 1, 2025. Operators should confirm with their carrier that the policy explicitly endorses short-term/transient rental use to satisfy the city's verification.