What the law requires
Chapter 337 of the Acts of 2018 requires every short-term rental operator to carry liability coverage of not less than $1,000,000 for each rental, unless the hosting platform provides equal or greater coverage.
Why your homeowner policy may not be enough
Most standard homeowner policies limit or exclude coverage once paying guests are in the house, and undisclosed rental activity is a common reason claims are denied. Coastal owners on a Massachusetts FAIR Plan policy should check the liability sublimit specifically, since it is often well below the state requirement.
- Tell your insurance agent in writing that the property is rented short term.
- Ask for written confirmation of the liability limit that applies during rentals.
- If you are on the FAIR Plan, ask about the liability sublimit and whether you need an umbrella or a separate policy.
- Keep a copy of the declarations page with your rental records. Our owners upload it to their Owner Hub.
Questions to ask your agent
- Does my policy cover bodily injury to paying guests? What is the limit during a rental?
- Is there a rental or “home-sharing” endorsement, and does it reach $1,000,000 per occurrence?
- Does my umbrella policy sit on top of the rental coverage?
- Is loss of rental income covered if the house is damaged mid-season?
- Are there exclusions for pools, hot tubs, docks, boats or bikes I leave for guests?
Island insurance agencies know Vineyard homes well; you will find some in our local vendor list.
Questions we hear
Does Airbnb’s host protection count?
The law exempts you only where the platform provides equal or greater coverage for that rental. Bookings that don’t come through such a platform still need your own coverage, so most owners carry it either way.
Is the $1,000,000 per rental or per year?
The law says coverage of not less than $1,000,000 for each rental. Ask your agent to confirm in writing how your policy meets that.
Updated October 2026. General information, not tax or legal advice: rules and rates change, so confirm with the Department of Revenue, your town and your own advisor before acting.