Maryland Short-Term Rental Insurance Regulation

The Maryland Insurance Administration regulates all property and casualty insurance under the Maryland Insurance Article. While the state does not mandate a specific minimum coverage amount for short-term rentals, standard homeowner policies generally treat frequent paid lodging as a business activity that voids coverage. Hosts should obtain a commercial rider, business pursuits endorsement, or dedicated short-term rental policy. Platforms like Airbnb provide host liability protection up to $1 million, but this is supplemental and may not cover all gaps. Insurance regulation is preempted to the state level, so municipalities cannot impose conflicting insurance mandates beyond requiring proof of compliant coverage.

Operating without proper coverage may void claims, create personal liability exposure, and breach mortgage or HOA insurance requirements. Insurance fraud carries criminal penalties.