Does Birmingham require insurance for a short-term rental?

Birmingham has no short-term rental ordinance at all. The city's own zoning department states it is still reviewing regulations for platforms like Airbnb, and no insurance, permit, or licensing requirement is currently in force for a short-term rental host.

That runs against what a reader might expect from Alabama's largest metro area. Compare Tuscaloosa, whose ordinance sets a $1 million liability floor for hosts, and Dothan, which requires property insurance with no liability minimum - Birmingham currently requires neither.

The absence of a city requirement does not remove the underlying insurance question. A standard homeowners policy typically excludes business use of the home, and renting a property out nightly is exactly the kind of business use that exclusion is written to catch.

Example: a guest is injured at a Birmingham short-term rental and sues the host. Without a dedicated short-term rental policy or endorsement, a standard homeowners policy's business-use exclusion can leave that claim uncovered, city ordinance or not.