Salem, OR Short-Term Rentals: Insurance Requirements (2026)

Salem licenses two kinds of rentals under SRC 30.010: the short-term rental and the accessory short-term rental. Each has its own standards section, and each contains an insurance clause worded almost identically. SRC 30.1105(e) governs the short-term rental, and SRC 30.1005(f) governs the accessory version.

The operator must maintain liability insurance, and the policy must cover the use of the property as a short-term rental. The coverage must be in effect during the entire term the license is valid. A short-term rental license is effective when issued and expires on December 31 of the year it is issued (SRC 30.1100(a)), so the policy has to stay in force through the calendar year, not just on the day the license is issued. The text names no minimum dollar amount and does not require the City to be listed as an additional insured, which sets it apart from the insurance clauses Salem writes for taxis and special events in the same chapter.

Insurance is checked at every licensing step. An applicant for a new license must submit proof that the applicant has, or will be able to obtain, any insurance required by the chapter (SRC 30.050). The Director can deny an application when the applicant has not provided adequate proof of that insurance, and the license issues only after fees are paid and proof of the required insurance is filed. Renewal works the same way: the renewal application, due not less than 30 days before the existing license expires, must include proof of the required insurance (SRC 30.055), the Director can deny a renewal when the applicant no longer has the insurance required by the chapter, and the renewal license issues only after proof is filed.

The insurance duty sits beside the other operator standards in the same sections: a local representative, a guest registry, transient occupancy tax compliance under SRC chapter 37, a valid license number on every advertisement, and conformance with the Housing Code in SRC chapter 59.