Rockville, MD Short-Term Rentals: Insurance Requirements (2026)

Montgomery County requires short-term rental license applicants to attest to maintaining adequate insurance coverage for their rental activity. Standard homeowner insurance policies typically exclude commercial lodging activities, which means hosting short-term rental guests without proper coverage could leave the owner exposed to liability. Hosts should contact their insurance carrier to add a short-term rental endorsement or obtain a separate commercial liability policy. Platforms like Airbnb offer Host Protection Insurance (up to $1 million liability) and AirCover, but these are supplemental and do not replace the need for a primary insurance policy. VRBO offers similar liability programs. The Montgomery County DHCA may request proof of insurance as part of the licensing process or during an inspection. Maryland law does not mandate a specific minimum coverage amount for short-term rentals, but the county advises hosts to carry at least $500,000 in liability coverage. Failure to maintain insurance could be grounds for license suspension.