Virginia Beach, VA Short-Term Rentals: Insurance Requirements (2026)

The Virginia Beach STR ordinance mandates that every short-term rental be covered by a liability insurance policy of no less than 1 million dollars that expressly covers short-term rental use. Standard homeowners policies typically exclude commercial or transient rental activity, so operators generally either add a commercial rider to their homeowners policy, purchase a standalone STR policy from a specialty carrier, or rely on platform-provided coverage such as Airbnb AirCover or Vrbo Liability Insurance. Airbnb AirCover is recognized by the city as sufficient under its current terms, which provide up to 1 million dollars of primary liability coverage per stay, and Vrbo offers an equivalent product; however, operators who take direct bookings must still carry an independent policy because platform coverage does not apply to non-platform stays. Proof of coverage is submitted with the CUP application or renewal, and the Zoning Administrator can require updated proof at any time. Cancellation or lapse of the required insurance is a CUP violation and can trigger revocation. Because Virginia Beach is exposed to hurricane and flood risk, operators along the Oceanfront, Chesapeake Bay, and Back Bay are strongly encouraged to also carry separate flood insurance through the National Flood Insurance Program.