Indiana Short-Term Rental Liability Insurance Authority

Indiana's STR statute IC 36-1-24-10 expressly permits local governments to require liability insurance as a permit condition. Many municipalities require minimum $1,000,000 per-occurrence coverage. Marketplace platforms like Airbnb provide host protection insurance that may satisfy local requirements when documentation is provided. Standard homeowners policies typically exclude commercial activity, so hosts should obtain endorsements or commercial dwelling policies. Proof of coverage must usually be submitted at permit application and renewal. The state does not directly mandate STR insurance but enables local enforcement.

Operating without required insurance can result in permit denial, suspension, or revocation under local ordinance authority granted by IC 36-1-24.