Will County, IL Short-Term Rentals: Insurance Requirements (2026)

Will County's larger STR-active municipalities — Joliet, Lockport, New Lenox, Frankfort, Mokena — require proof of commercial general liability insurance as part of STR registration. Minimum coverage ranges $500,000 to $1,000,000 per occurrence, with Joliet Chapter 38 requiring $1M and naming the city as additional insured. Plainfield conditional use permits typically require $1M CGL plus workers' comp if housekeepers are employed. Standard Illinois ISO HO-3 homeowner policies exclude 'business pursuits' including short-term rental — see Cincinnati Ins. Co. v. Ross (N.D. Ill.) and similar Illinois coverage disputes. Hosts must obtain either a commercial landlord/STR endorsement (often 15-25% premium increase) or a dedicated STR policy from carriers like Proper, Obie, or Slice. Airbnb's AirCover (formerly Host Guarantee + Host Protection Insurance) provides $1M liability secondary to host's primary policy, but many Will County municipalities do not accept platform-provided coverage as sole proof. Vrbo's Liability Insurance is similar. Illinois Department of Insurance licensed carriers required. Proof uploaded at annual permit renewal.