The Boone County Fiscal Court has recently adopted a new short-term rental ordinance.  With the rising concern of the number of rentals in this small city, they are hoping to better regulate the vacation rentals with these new rules.  The new ordinance includes short-term rental registration requirements and permits, safety inspections, STR restrictions, informational brochure required, safety features, proof of liability insurance, and more.  If a short-term rental owner is not in compliance with these new regulations, they will be fined $200 on the first day and $500 each day after.

NEW Short-Term Rental Restrictions 

  1. Use. Short-term rentals shall only be permitted consistent with the Boone County Zoning Regulations. 
  2. External Signage.  There shall be no external on-site or off-site advertising signs or displays indicating the property is a short-term rental.
  3. Non-Dwelling Units.  Short-term rentals shall not be allowed on any area not considered a primary dwelling, I.e., recreational vehicles, tents, garages, boats, etc. 
  4. Limit on occupants allowed.  No more than two adult guests per bedroom, plus no more than two additional adults shall be allowed when renting a property as a short-term rental, except that:
    1. There shall be a maximum occupancy of no more than ten persons, adult, and children
    2. Bedrooms under 120 square feet shall be limited to only one adult occupant
  5. Limits on number of vehicles. A minimum of one (1) parking space shall be provided per guestroom or suite. All parking for a short-term rental, shall be provided off-street on a paved surface and inconformity with all applicable zoning regulations. 
  6. Advertisement and contracts. Any advertisement of the property as a Short-Term Rental and all rental contracts must contain language that specifies the allowed maximum number of occupants and maximum number of vehicles. 
  7. Spacing Requirements. The property on which the Short-Term Rental is to be located shall not be closer than one thousand (1,000) feet, measured in a straight line from the nearest property line to the nearest property line on another approved short-term rental. 
  8. Other restrictions1-6 

Discover the remaining regulations and application requirements in the full ordinance. 

NEW Short-Term Rental Insurance Requirement

Included in the new ordinance, all applicants for a short-term rental must include proof of liability insurance.  In Section 3.(a).(8)., they state that,

“Applicant shall provide with the application a certificate of insurance or other valid proof of general liability insurance in an amount not less than one million ($1,000,000) per occurrence which shall remain in effect at all times while engage in the permitted activity.”

By requiring proof of liability insurance, the county is honestly looking out for your best interest.  The primary reason for an insurance requirement is to ensure that short-term rental owners are properly protected from injuries or property damage.  One of the biggest areas of risk exposure in the short-term rental industry is liability.  Liability risk applies any time you open your door to paying guests.  If anything happens to your guests during their stay, whether it’s a slip in the shower or fire in the suite, the owner becomes liable.

When deciding what insurance you need, it’s important to keep in mind that you are operating a business and need a policy that will still cover you in situations related to business activity.  A normal homeowner’s policy would not provide you coverage if something were to happen at your short-term rental.  All homeowner’s policies carry a ‘business activity exclusion’, and as a vacation rental operator, you are running a business.  The second you mention ‘business activity’ while trying to make a claim with your homeowner’s policy you will be denied and left to pay out of pocket.  This is why it’s so important to ensure that your insurance company understands that you’re operating a business and the policy is tailored towards vacation rentals.  At Proper, we have designed a custom penned policy that’s dedicated to short-term rentals and will be there for you if an issue arises.

General Short-Term Rental Insurance Requirement Information

Cities that have started requiring insurance in order to operate your vacation rental are looking out for you and your rental business.  They have seen numerous situations where a short-term rental owner didn’t have the correct coverage and ended up having to deal with the expensive situation themselves.

Commercial general liability is found in business insurance policies and protects the insured against claims of bodily injury or property damage they could be found legally liable for.  It is the most comprehensive liability insurance one can purchase for short-term rentals.

Additionally, when defining the “proof” of insurance, cities or counties can easily require a “certificate of insurance” which is a standardized form to show proof of insurance to various interested parties, including banks, mortgage lenders, or in this case, cities or counties requiring owners to provide proof of insurance on the short-term rental application.

Quote Your Short-Term Rental Today  

Looking to fulfill the Boone County insurance requirement today with a policy that’ll protect you and your business from liability and damage claims? Proper Insurance leads the Nation in short-term rental insurance, with over 50,000 policies written in all 50 states. Backed by Lloyd’s of London and exclusive endorsements from short-term rental leaders such as HomeAway and Vrbo, Proper Insurance is built on world-class insurance coverage that meets and exceeds both city and lender requirements.

Quote Your Short-Term Vacation Rental Today