Vestavia Hills, AL Short-Term Rentals: Insurance Requirements (2026)

Because Ordinance 3204 prohibits short-term rentals (any rental of ninety days or less in a dwelling or dwelling unit) and prohibits advertising of such rentals, Vestavia Hills has no STR registration program and therefore no companion insurance requirement, certificate-of-insurance filing, or minimum liability limit. By contrast, jurisdictions that allow STRs typically require operators to maintain a liability policy, often $1,000,000 per occurrence, and to attach a certificate of insurance to the annual permit. Vestavia Hills does not. Standard homeowner insurance policies in Alabama generally exclude commercial or short-term rental activity, so any owner who had previously been operating before Ordinance 3204 likely held a separate landlord or short-term rental endorsement; that coverage remains a private contractual matter with the carrier and is not regulated by the city. Property owners in Vestavia Hills who lease for terms longer than ninety days operate as long-term landlords under standard Alabama landlord-tenant law (Code of Alabama Title 35 Chapter 9A) and are not subject to the STR prohibition, but they receive no city-mandated insurance directive either. Owners with property outside the Vestavia Hills city limits but within Jefferson or Shelby County should consult county zoning, the Alabama state lodgings tax (four percent under Title 40 Chapter 26 of the Code of Alabama), and any platform-level coverage such as Airbnb's Host Liability program.