Rhode Island Does Not Mandate Short-Term Rental Insurance

Rhode Island's short-term rental law, R.I. Gen. Laws Chapter 42-63.1, requires hosts to register each unit with the Department of Business Regulation but does not mandate liability insurance. The DBR confirms that neither Section 42-63.1-14 nor its regulation contains any insurance requirement, and registrants are not asked to show proof of coverage. Hosts often carry liability insurance or rely on a platform program such as Airbnb's Host Liability Insurance, but this is voluntary. Any insurance mandate would come from a local ordinance, not from state law.

No state insurance penalty exists because Rhode Island imposes no coverage requirement. Failure to register the rental, however, can draw fines up to $250 per day under Section 42-63.1-14.