Tempe, AZ Short-Term Rentals: Insurance Requirements (2026)
Key Facts
- License
- Tempe STR license required ($250/year)
- License Penalty
- Up to $1,000/month without license
- Homeowner's Policy
- May exclude STR activity
- Platform Insurance
- Limited host protection available
- TPT Rate
- 14.07% combined
- State Law
- ARS 9-500.39
Summary
Tempe's STR license ordinance (O2023.01) and Arizona law (ARS 9-500.39) establish the framework for STR insurance. Operators should carry liability insurance as standard homeowner's policies may exclude STR activity. STR platforms provide some host protection, but personal coverage is recommended. The annual $250 license fee helps fund enforcement.
To require the vacation rental or short-term rental to maintain liability insurance appropriate to cover the vacation rental or short-term rental in the aggregate of at least $500,000 or to advertise and offer each vacation rental or short-term rental through an online lodging marketplace that provides equal or greater coverage.
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Full Breakdown
Short-term rental insurance in Tempe operates under the city's STR licensing ordinance (effective March 2023) and Arizona state law (ARS 9-500.39). While the city does not mandate a specific insurance minimum beyond state requirements, prudent operators should maintain liability coverage. Standard homeowner's insurance policies typically exclude commercial rental activity including short-term rentals. Most STR platforms (Airbnb, VRBO) provide host protection insurance with coverage limits and exclusions. Personal umbrella policies or specialized STR insurance provide additional protection. Tempe's $250 annual license fee supports enforcement of STR regulations. The city requires emergency contact registration and compliance with health and safety standards. The total TPT rate for Tempe STRs is 14.07%, including state, county, and city taxes.
Violations & Fines
Operating without a Tempe STR license carries penalties up to $1,000/month. Operating without proper insurance creates personal liability exposure.
Frequently Asked Questions
Do I need insurance for my Tempe STR?
How much is the Tempe STR license?
What taxes do I pay on STR income in Tempe?
Sources & Official References
Other rules in Tempe
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