Arizona Insurance Requirements Law: Statewide Short-Term Rentals Rules (2026)

Key Facts

Minimum coverage: $500,000 liability
Statute: A.R.S. 9-500.39(A)(3)
Marketplace alternative: Allowed if equivalent
Proof: Required on request

Full Breakdown

Effective from 2022 amendments, A.R.S. 9-500.39 mandates that vacation rental and short-term rental owners maintain liability insurance of at least $500,000 covering the rental property, or offer the rental exclusively through an online lodging marketplace that provides equal or greater coverage for each stay. Proof of insurance must be available upon request to the municipality and to renters.

Violations & Penalties

Operating without required insurance may result in permit denial or revocation and verified violation penalties up to $3,500.

Frequently Asked Questions

Does Arizona require STR liability insurance?

Yes. State law requires at least $500,000 liability coverage on the rental, unless booked exclusively through a marketplace like Airbnb providing equal coverage.

Does Airbnb's host coverage satisfy Arizona's requirement?

Airbnb's AirCover for Hosts generally meets the $500,000 threshold for stays booked through the platform. Direct bookings still need a standalone policy.

Arizona Short-Term Rental Liability Insurance Mandate

Key Facts

Full Breakdown

Violations & Penalties

Frequently Asked Questions

Sources

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