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

Montgomery County's short-term rental regulations under Chapter 54 do not specify a minimum liability insurance amount that hosts must carry as a condition of licensing. This differs from some jurisdictions that require $500,000 or $1 million in liability coverage. However, prudent hosts in Takoma Park should verify that their homeowner's or renter's insurance covers short-term rental activity, as many standard policies exclude commercial lodging use. Without proper coverage, a host could face personal liability for guest injuries or property damage. Major platforms offer some protection: Airbnb provides AirCover with up to $1 million in host liability insurance and up to $1 million in damage protection, though this has exclusions and limitations. VRBO offers similar but distinct coverage. These platform programs are secondary to the host's own insurance and may not cover all situations, such as liability for injuries in common areas or incidents involving the host's own property. Hosts operating in Takoma Park's older housing stock (many homes built in the early 1900s) should pay particular attention to liability risks related to stairs, walkways, and aging infrastructure. A standalone short-term rental insurance policy or a rider on an existing homeowner's policy is recommended.