Branson, Missouri continues to be one of the top vacation destinations in the Midwest. With attractions, entertainment, and proximity to Table Rock Lake, many investors and homeowners are turning to short-term rentals (STRs) as income-producing properties. You need to understand insurance for short term rentals in Branson, Missouri.
However, operating a short-term rental in Branson requires more than listing your home on Airbnb or VRBO. You must comply with city ordinances, zoning rules, licensing requirements — and carry the right insurance coverage.
This guide covers both the legal requirements and the insurance risks every Branson STR owner should understand.
What Is Considered a Short-Term Rental in Branson?
The City of Branson defines a short-term rental as a dwelling rented for one to 30 consecutive days that is not a traditional hotel or motel.
If you are renting:
- A condo
- A lake home
- A cabin
- An investment property
For nightly stays, you are operating a short-term rental under city ordinance.
Branson Short-Term Rental Ordinance Requirements
1️⃣ Business License Required
STR operators must obtain:
- A Branson business license
- An STR permit for each property
Licenses are not optional. Operating without one can lead to fines and possible suspension.
2️⃣ Fire Department Inspection
Before approval, properties must pass:
- Fire safety inspections
- Smoke detector verification
- Carbon monoxide detection requirements
- Fire extinguisher placement
STR permits are typically valid for multiple years once approved.
3️⃣ Zoning Restrictions
Not all residential neighborhoods allow nightly rentals.
Short-term rentals are generally:
- Prohibited in low-density residential zones
- Allowed in certain commercial or high-density areas
- Subject to additional restrictions in planned developments
Before purchasing an investment property, verify:
- Zoning classification
- HOA or deed restrictions
- Parking requirements
Even if the city allows STRs, an HOA can prohibit them.
4️⃣ Tourism & Lodging Taxes
STR operators must collect and remit:
- Local tourism tax
- Applicable lodging or sales taxes
While Airbnb and VRBO may collect some taxes, owners remain responsible for compliance and proper registration.
Insurance for Short-Term Rentals in Branson
This is where many owners make costly mistakes.
❌ Homeowners Insurance Is Usually Not Enough
A standard homeowners policy is designed for:
- Owner-occupied primary residences
- Long-term tenants
Once you begin renting nightly, your risk profile changes significantly.
If you fail to notify your insurance carrier about short-term rental activity, you risk:
- Claim denial
- Policy cancellation
- Material misrepresentation issues
What Insurance Coverage Should STR Owners Carry?
1️⃣ Short-Term Rental or Landlord Policy
You typically need:
- A dwelling fire or landlord policy
- Coverage specifically allowing short-term rental use
Some carriers offer endorsements for Airbnb/VRBO exposure.
2️⃣ Commercial Liability Exposure
Short-term rentals dramatically increase liability risk.
Common claims include:
- Guest slip and fall injuries
- Balcony or deck failures
- Hot tub injuries
- Alcohol-related incidents
- Fire damage caused by guests
You should consider:
- $1M minimum liability limits
- Personal umbrella policy for added protection
3️⃣ Loss of Income Coverage
If a fire, storm, or water loss forces you to cancel bookings, proper STR policies can provide:
- Business income protection
- Loss of rents coverage
Standard homeowners policies often exclude this exposure for nightly rentals.
4️⃣ Property Damage Differences
STR policies can help cover:
- Guest-caused damage
- Vandalism
- Theft
- Intentional destruction
Platform “host guarantees” are not insurance policies and often have exclusions and reimbursement limits.
Why Insurance Matters More in Branson
Branson sees:
- Heavy seasonal tourism
- High guest turnover
- Vacation activity around lakes and entertainment districts
More guests = more exposure.
Additionally, properties near Table Rock Lake may have added risks:
- Storm damage
- Water exposure
- Dock liability
- Recreational accidents
Insurance must match both rental activity and location risks.
Frequently Asked Questions
Is Airbnb’s insurance enough?
No. Airbnb’s Host Protection Program is secondary and limited. You still need your own STR policy.
Will my homeowners policy cover guest injuries?
Often no — especially if rental activity was not disclosed.
Do I need commercial insurance?
Not always fully commercial, but you need a policy that permits short-term rental operations.
Should I carry umbrella coverage?
Yes. Short-term rentals increase your personal liability exposure significantly.
Final Thoughts
Operating a short-term rental in Branson can be profitable — but only if done correctly.
You must comply with:
- City of Branson licensing and zoning rules
- Fire inspection requirements
- Tourism tax obligations
- Proper insurance coverage
Many STR owners focus on revenue but overlook insurance until after a claim.
Before listing your property, confirm:
- Your zoning allows STR use
- Your permit is approved
- Your insurance carrier knows it’s a short-term rental
That review can protect your investment, income stream, and personal assets.