Scottsdale, AZ Short-Term Rentals: Insurance Requirements (2026)

Under Ordinance 4566, every vacation and short-term rental property in Scottsdale must carry liability insurance with a minimum coverage of $500,000. This insurance must cover bodily injury and property damage claims arising from the STR use. The coverage may be obtained directly by the property owner through a homeowner's or commercial liability policy, or through an online lodging marketplace's host protection program (Airbnb, Vrbo, etc.). Operators should verify that marketplace coverage meets the minimum threshold and covers all potential claims. Standard homeowner's insurance may exclude STR activities, so a separate endorsement or commercial policy may be necessary. The $500,000 minimum applies regardless of property value or number of bedrooms. Proof of insurance may be requested during the licensing process or during inspections.