Quick Answer: Do Nashville Hosts Need Special Insurance?
Nashville short‑term rental operators must carry proper liability and property insurance for STR operations — Metro requires proof of homeowner’s fire/hazard and liability insurance with minimum limits of $1,000,000 per occurrence for STR permits. Airbnb’s AirCover/Host Protection can help but is not a substitute for a required commercial policy; hosts should confirm permit language and policy endorsements before listing.
| Factor | Nashville STR Market | Insurance Impact | Notes |
|---|---|---|---|
| Active Listings | 3,000+ | High demand for STR coverage | Growing market |
| Average Nightly Rate | $150-$300 | Higher liability exposure | Premium pricing area |
| Required Coverage | Commercial STR Policy | 3-5x standard home insurance | Mandatory for compliance |
Nashville STR Insurance Risk Lookup
Enter your Nashville ZIP code to see STR insurance requirements and average costs for your area.
Popular STR areas: 37203, 37205, 37206, 37212- Property damage from guests
- Guest injury liability
- Business property coverage
- Loss of rental income
- Enhanced liability protection
- Flood damage (separate policy)
- Earthquake damage
- Wear and tear, neglect
- Illegal activities by guests
- Guest vehicle damage
Nashville STR Insurance Risk Assessment
Nashville STR Permit Insurance Requirement (what the city actually asks for)
Metro requires proof of homeowner’s fire/hazard and liability insurance with limits ≥ $1,000,000 per occurrence for STR permits. Include your declarations page and ensure STR/business use is explicitly covered via endorsement or a dedicated policy.
Policy Checklist before you list
- Declarations page shows property address and ≥ $1,000,000 liability per occurrence. (Nashville.gov)
- Policy explicitly covers STR/business use or a commercial STR policy is in force.
- Loss of rental income and business personal property included or added.
- Replacement cost on dwelling; confirm roof and HVAC.
- Primary coverage vs platform coverage clarified; do not rely on secondary only. (Airbnb)
- Named insured includes owner and any management company.
- Plan for exclusions: guest illegal activity, wear/tear, flood, earthquake.
What Airbnb / AirCover / Host Protection Does (and doesn’t) cover
Airbnb’s protections (AirCover/Host Protection) are supplemental and have conditions, limits, and exclusions. They may not satisfy Metro’s permit insurance requirement. Always carry a primary policy that covers STR operations.
Nashville STR Permit Requirements
Commercial Insurance: Minimum $1 million liability coverage
Property Coverage: Full replacement cost coverage
Business Activity: Must cover short-term rental operations
Davidson County Regulations
Zoning Compliance: STR operations must be permitted
Safety Requirements: Smoke detectors, fire extinguishers
Insurance Documentation: Proof of coverage required for permit
Airbnb Host Protection
Host Guarantee: Up to $1 million property damage protection
Host Protection: Up to $1 million liability coverage
Limitations: Not a replacement for commercial insurance
| Requirement | Minimum Coverage | Nashville Specific | Compliance Notes |
|---|---|---|---|
| Liability Insurance | $1,000,000 | Required for permit | Must cover STR activities |
| Property Coverage | Replacement Cost | Full dwelling coverage | Business property endorsement |
| Loss of Income | Varies by policy | Rental income protection | Coverage for business interruption |
Policy Options: Endorsements vs Commercial STR vs Umbrella
Nashville STR hosts have several insurance options, each with different coverage levels and costs. Understanding these options helps you choose the right protection for your rental business.
Homeowners + STR Endorsement Limited
Adds STR coverage to existing home insurance. Limited coverage for occasional rentals, typically 30-60 days per year maximum.
Commercial STR Policy Recommended
Dedicated STR insurance with comprehensive coverage for business operations, guest injuries, and property damage.
Umbrella Policy Additional
Extra liability protection above primary STR coverage. Provides additional security for high-value properties.
Loss of Rental Income Essential
Covers lost rental income when property is uninhabitable due to covered damage. Critical for cash flow protection.
Policy Options for Nashville Hosts
Nashville STR hosts can choose from several policy types based on their rental frequency, property type, and risk tolerance. Each option offers different coverage levels and pricing.
STR Policy Comparison
Policy Selection Guide
Occasional Rentals (1-30 days/year): Homeowners + STR endorsement
Regular Rentals (30+ days/year): Commercial STR policy
High-Value Properties: Commercial STR + Umbrella
Multiple Properties: Commercial portfolio policy
| Policy Type | Coverage Level | Best For | Annual Cost Range |
|---|---|---|---|
| Homeowners + STR Endorsement | Limited | Occasional rentals | $500-$1,500 |
| Commercial STR Policy | Comprehensive | Regular STR operations | $2,000-$5,000 |
| Commercial + Umbrella | Maximum | High-value properties | $3,000-$8,000 |
Flood & Secondary Risks (what you still must buy separately)
Understanding what STR insurance doesn't cover is as important as knowing what it does cover. These exclusions can create significant gaps in your protection.
Flood Damage Not Covered
Requires separate flood insurance through NFIP or private flood coverage. Nashville's proximity to the Cumberland River makes this particularly relevant.
Earthquake Damage Not Covered
Requires separate earthquake insurance. While less common in Nashville, it's worth considering for comprehensive protection.
Wear and Tear Not Covered
Normal wear and tear from guest use is not covered. Regular maintenance and property updates are the host's responsibility.
Illegal Activities Not Covered
Damage from illegal activities by guests is typically excluded. This includes drug use, illegal parties, or criminal activities.
Critical Gap: Flood Insurance
Many Nashville STR hosts don't realize that a flood damage requires separate coverage. The Cumberland River and its tributaries create flood risk that standard STR policies don't cover.
Compare Nashville STR Insurance Options
Get quotes from insurers specializing in short-term rental coverage in Nashville.
Airbnb Insurance Costs in Nashville
STR insurance costs in Nashville vary based on property value, rental frequency, location, and coverage level. Understanding these cost factors helps you budget for proper protection.
Nashville STR Insurance Cost Insights (2025 Update)
Average STR Premium
$3,500-$6,000
Per year
High-End Properties
$8,000-$15,000
Luxury STRs
Premium vs Home Insurance
3-5x higher
Than standard home insurance
| Property Type | Coverage A | Rental Frequency | Annual Premium Range |
|---|---|---|---|
| 1,500 sq ft, downtown condo | $350,000 | Part-time (60 days/year) | $2,500-$4,000 |
| 2,200 sq ft, East Nashville house | $450,000 | Full-time (200+ days/year) | $4,000-$6,500 |
| 3,500 sq ft, luxury home | $750,000 | Full-time (200+ days/year) | $8,000-$15,000 |
Factors That Increase Costs
- High rental frequency (200+ days/year)
- Property in high-risk areas
- Previous STR claims
- Lack of safety features
- High property value
Ways to Reduce Costs
- Install security systems
- Higher deductibles
- Bundling with other policies
- Claims-free history
- Professional property management
Local Compliance & Permit Renewal Tips
Nashville's STR regulations require specific insurance coverage for compliance. Understanding these requirements helps ensure your rental business operates legally and safely.
1. Obtain STR Permit
Apply for Nashville STR permit with proof of commercial insurance coverage.
2. Maintain Insurance Coverage
Keep active commercial STR insurance policy throughout rental operations.
3. Annual Renewal
Renew STR permit annually with updated insurance documentation.
4. Compliance Monitoring
Regularly review coverage to ensure continued compliance with regulations.
Claims Process & Host Documentation Checklist
Filing STR insurance claims requires prompt action and proper documentation. Understanding the claims process helps ensure fair compensation for your losses.
1. Immediate Documentation
Take photos and videos of damage immediately. Document guest information and incident details.
2. Contact Insurance Company
Report the claim immediately. Most STR insurers have 24/7 claims hotlines for emergency situations.
3. Secure Property
Make temporary repairs to prevent further damage, but keep receipts for all expenses.
4. Meet with Adjuster
Schedule inspection with insurance adjuster and provide all documentation of damage and losses.