Wilmington, NC Short-Term Rentals: Insurance Requirements (2026)

Wilmington's whole-house and homestay short-term rental provisions in Land Development Code Chapter 18, Article 6 require operators to carry commercial general liability insurance with a total limit of no less than $500,000 each occurrence for bodily injury and property damage, naming coverage that responds to short-term lodging activity rather than ordinary homeowner occupancy. Standard homeowner policies typically exclude or sharply limit short-term rental exposure, so most hosts must obtain a commercial host policy from carriers that specialize in STR coverage, or rely on a platform-provided liability program when the program meets the $500,000 commercial general liability threshold and lists short-term rental use specifically. While the Schroeder decision (Schroeder v. City of Wilmington, 274 N.C. App. 569 (2022)) held that NCGS 160D-1207(c) preempts municipal registration, permit, and similar tracking systems for residential rentals, the Court of Appeals preserved insurance, occupancy, parking, posted-flyer, and large-gathering standards as ordinary development and operational regulations the city may continue to enforce. Wilmington Code Enforcement may request proof of coverage in connection with any complaint or inspection, and the standard applies regardless of whether the host operates through Airbnb, Vrbo, or another platform. Hosts in floodplain zones along the Cape Fear River and intracoastal waterway should also confirm any carrier flood-policy requirements, but the LDC mandate is for commercial general liability, not flood coverage. The state-level enabling authority sits in NCGS Chapter 160D, with the carve-out for development standards reaffirmed in Schroeder.