Sedona, AZ Short-Term Rentals: Insurance Requirements (2026)
Key Facts
- Minimum coverage
- $500,000 aggregate liability
- Who may hold policy
- Owner, designee, or booking platform
- Proof deadline
- 10 calendar days of city request
- Governing section
- SCC 5.25.090
- Enacted under
- A.R.S. § 9-500.39 framework
Summary
Sedona requires every short-term rental owner, designee, or booking platform to carry at least $500,000 in aggregate liability insurance and to produce proof within 10 days of a city request.
5.25.090 Insurance required.
A. Required Insurance. The owner, owner's designee, or the online lodging marketplace platform shall maintain liability insurance appropriate to cover the short-term rental in the aggregate of at least $500,000.
B. Proof of Insurance. Proof of the required liability insurance coverage shall be provided to the city upon a request by the city within 10 calendar days of a request from the city.
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Initiative Ordinance 2026-01, approved by voters at the July 21, 2026 election).
Full Breakdown
39), sets the insurance floor for every permitted short-term rental in the city. ' The obligation can be satisfied by the property owner's own policy, the designee's coverage, or coverage supplied through the online lodging marketplace (such as a host protection policy from a booking platform), giving owners flexibility in how the $500,000 aggregate is met. ' That 10-day production window means an owner who cannot promptly document coverage is out of compliance even if a policy technically exists. 110 if it rises to a serious threat to public health and safety.
The requirement applies citywide to any property operated under a Sedona short-term rental permit, regardless of which county side of the city line the parcel sits on.
Violations & Fines
Failure to maintain the $500,000 aggregate liability policy, or failure to produce proof of coverage within 10 calendar days of a city request under SCC 5.25.090(B), is a violation of Chapter 5.25. Repeated or serious violations feed into the permit suspension framework of SCC 5.25.110, which allows suspension of the short-term rental permit for up to 12 months after written notice, with a 15-day window to request a hearing before the short-term rental specialist.
Frequently Asked Questions
How much liability insurance does a Sedona short-term rental need?
Can a booking platform's coverage satisfy Sedona's insurance rule?
What happens if a Sedona short-term rental owner can't show proof of insurance?
Sources & Official References
Other rules in Sedona
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