Grand County has approved new updates on the Short-Term Rental Regulation Code on September 21st.  The county has organized a workgroup that will be diving into the bigger issues related to short-term rentals.  One of their first goals is to raise the short-term rental registration compliance to 90% by December 31st.  With the amendments approved, along with a contract update for the service that monitors the county’s short-term rentals for compliance and enforcement, county staff members believe that they will be able to achieve the first goal. 

As the county begins to make sure that all short-term rentals are in compliance with the regulations, the county has implemented violations fines as a failure to comply with the provisions.  It’s important to stay informed on the current regulations in place to avoid any violations and fines to pay.

Application for a New or Renewal Short-Term Rental Permits 

  1. Sales Tax License.  The property owner or property manager shall provide current sales tax license for the short-term rental issued by the Colorado Dept. Of Revenue and shall be responsible for remitting County sales tax and lodging tax. 
  2. Local 24-Hour Contact. Each short-term rental shall have a primary and secondary person responsible to manage the short-term rental during any period it is occupied and be able to respond within one hour or less. 
  3. Occupancy.  The maximum occupancy of any short-term rental shall be provided in the application.  No property may be advertised or rented for use by more persons than the maximum occupancy advertised. 
  4. Access and Parking. Adequate driveway access and parking shall be provided in compliance with section 14.4. 
  5. Garbage.  The short-term rental shall have a plan for garbage storage and disposal. 
  6. Safety.  The property owner shall equip the dwelling with operable smoke alarms, fire extinguishers and carbon monoxide alarms.  
  7. Physical Address.  The physical address shall be posted on the Property, clearly visible and legible from the street. 

Continue here to keep reading the full explanation and requirements for each of the items above. 

Grand County Short-Term Rental Limitation of Liability Requirement 

Within the current ordinance, Grand County has a liability insurance requirement for all short-term rental owners. 

“Grand County assumes no responsibility for the operation of the site and Owner covenants and agrees to hold Grand County harmless for any injury of damage which may occur, of whatever type or nature, as the result of the operation of the Short-Term Rental.  Owner shall maintain appropriate liability insurance for the short-term rental.  Owner further warrants and agrees to compensate Grand County for any expense incurred in the defense of any lawsuit or other type of action which may be brought against said County as a result of said Owner’s operation of this use.” 

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 with 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