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Arizona Statewide Rule

Arizona Short-Term Rental Liability Insurance Mandate

Heavy RestrictionsApplies statewide across Arizona (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
Last verified: September 5, 2026Source: Arizona State Legislature

Summary

A.R.S. 9-500.39 requires Arizona short-term rental operators to maintain at least $500,000 in liability insurance or rent through a marketplace providing equivalent coverage.

To require the vacation rental or short-term rental to maintain liability insurance appropriate to cover the vacation rental or short-term rental in the aggregate of at least $500,000 or to advertise and offer each vacation rental or short-term rental through an online lodging marketplace that provides equal or greater coverage.

Source: Arizona State LegislatureView official code

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.

Sources

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