Nashville is one of the most popular weekend destinations in the country, and plenty of homeowners have thought about listing a spare room or a backyard cottage. Before your first guest checks in, it’s worth sorting out insurance. Short-term rental insurance in Nashville isn’t just smart risk management. Metro’s permit process actually asks for it.
Quick takeaway
- Metro Nashville’s short-term rental permit application asks for proof of fire, hazard, and liability insurance, with at least $1 million in liability per occurrence.
- A standard homeowners policy may limit or exclude coverage when you rent your home to paying guests.
- Platform host protection programs can help, but they aren’t the same as your own policy. Read what they actually cover.
- Rules differ outside Davidson County, so check with your city or county.
What Metro Nashville requires for STR permits
In Davidson County, short-term rental properties need a permit from Metro Codes. According to Metro Nashville’s short-term rental permit application page, applicants must provide proof of homeowner’s fire, hazard, and liability insurance. The liability coverage must have limits of not less than $1 million per occurrence.
Metro’s page also notes that in some cases, a booking platform may offer insurance that meets the requirement, and applicants can provide their profile page as proof. Metro’s FAQ says that permit renewals also require proof of current property insurance.
Permit rules change, and the details depend on your zoning and whether the property is owner-occupied, so confirm the current requirements with Metro Codes before you apply.
If your property is outside Davidson County, in a city like Hendersonville, Franklin, or Mt. Juliet, check with that city or county. Local rules vary.
Why your homeowners policy may not be enough
A standard homeowners policy is written for a home you live in. When you start renting it to paying guests, the risk changes. More strangers come and go, there’s more wear, and there’s more chance of an injury claim. Many homeowners policies limit or exclude losses tied to “business” use or rental to others, especially when rentals are frequent.
What that can mean in practice:
- Damage caused by a guest may not be covered
- Liability claims from a guest injury may be excluded
- Your own belongings in the rental space may have limited coverage
- Lost booking income after a covered loss usually isn’t included
Some carriers offer a home-sharing endorsement for occasional hosting. Others require a different policy, such as a dwelling fire or landlord policy designed for rentals. Our guide to landlord insurance in Tennessee explains how DP-1, DP-2, and DP-3 dwelling policies differ.
Platform host protection vs. your own policy
Many booking platforms advertise host protection programs. They can be helpful, but they’re not a substitute for reading the fine print. Before relying on one, ask:
- Is it primary or excess over my own insurance?
- What’s the liability limit, and does it meet Metro’s $1 million per occurrence requirement?
- What property damage is covered, and what’s excluded, like normal wear, pet damage, or cash and valuables?
- How are claims filed, and how long do they take?
- Does it cover bookings made outside the platform?
Many hosts use a platform program as one layer and still carry their own policy built for short-term rental use. That way, you’re not depending entirely on a program you don’t control.
Coverages Nashville STR hosts should think about
- Dwelling coverage: the structure, including a detached unit, garage apartment, or backyard cottage.
- Liability: for guest injuries, like a fall on the stairs or a slip on the deck. Metro’s minimum is $1 million per occurrence.
- Contents: the furniture, linens, TVs, and kitchen items you supply for guests.
- Loss of rental income: to replace booking income if a covered loss makes the property unrentable.
- Theft and vandalism by guests: often limited or excluded on standard forms, so ask specifically.
- Umbrella liability: for hosts with significant assets, extra liability above the underlying policy.
Owner-occupied vs. non-owner-occupied
Metro distinguishes between owner-occupied permits and non-owner-occupied permits, and insurance carriers draw a similar line. Renting a room or a cottage behind the house you live in is a different risk from renting an entire home where you don’t live. Expect underwriting questions about:
- How many nights a year you rent
- Whether you live on the property
- How many guests you allow
- Whether there’s a pool, hot tub, or rooftop deck
- Your house rules on parties and events
Be accurate. If your hosting grows from a few weekends a year to a steady calendar, tell your agent. Your coverage should grow with it.
Safety steps that also protect your coverage
Metro’s permit checklist includes a fire marshal inspection and a floor plan showing smoke detectors. A safe property protects your guests and makes claims less likely. A few habits:
- Test smoke and carbon monoxide detectors before every busy season.
- Keep a fire extinguisher in the kitchen and show it in your house manual.
- Light stairs, walkways, and porches well.
- Post your house rules clearly, including occupancy limits.
- Keep a log of maintenance and guest check-ins.
Common mistakes hosts make
- Listing first and calling the agent later. Coverage gaps start with the first booking.
- Assuming the platform covers everything. Read the terms.
- Underinsuring contents. Furnishing a rental adds up quickly.
- Forgetting the HOA. Metro’s application requires a statement that the rental doesn’t violate HOA or condo rules. Your insurer may ask about this too.
Frequently asked questions
Does homeowners insurance cover Airbnb in Nashville?
Often not fully. Many homeowners policies limit or exclude rental to paying guests. Some carriers offer a home-sharing endorsement, and others require a policy designed for rentals. Check your policy and talk to your agent before you list.
How much liability insurance do I need for a Nashville STR permit?
According to Metro Nashville’s permit page, liability coverage must have limits of not less than $1 million per occurrence. Confirm current requirements with Metro Codes.
Can I use a booking platform’s host coverage for my Metro permit?
Metro says that in some cases a booking platform may offer insurance that meets the requirement, and you can submit your profile page as proof. Make sure the coverage actually meets the requirement before you rely on it.
Does short-term rental insurance cover lost bookings?
Some policies include loss of rental income after a covered loss, such as a fire. Cancellations for other reasons usually aren’t covered.
Next step
Before your first guest arrives, make sure your policy matches how you actually use the property. Learn more about rental dwelling insurance with Eric Henry, Insurance Agent, and ask Eric to compare short-term rental options and liability limits that line up with Metro’s requirements.
Coverage descriptions are general information only; your policy documents determine actual coverage. Availability varies by carrier.
