Short-term rental insurance in California: what property managers need
Regulations vary widely by city. Los Angeles, San Francisco, and San Diego each have distinct permitting and occupancy rules.
There's no single statewide insurance mandate, but cities and counties set their own permit conditions — and a growing number ask for proof of commercial coverage. Check each market you operate in, not just the state.
The headline obligation to check first when adding California properties to your portfolio.
Cities in California with a proof-of-insurance rule
$500,000 per occurrence
A short-term rental or personal liability policy with at least $500,000 per occurrence must be in force for the full term of the vacation rental certificate, with proof provided at application and at every renewal.
The full city list, and what each certificate has to show, is on the certificate of insurance page.
Top short-term rental markets in California
The cities where California portfolios concentrate, and what each one asks of an operator before the first guest arrives. Insurance requirements shown are the city's stated permit condition; your management agreements and lenders will usually ask for more.
| City | Permit or registration | Proof of insurance | Worth knowing |
|---|---|---|---|
| Palm Springssource · 2026-09-09 | Vacation Rental Registration Certificate (also Homeshare and Junior Vacation Rental certificates) | Required — $500,000 liability per occurrence | Vacation rentals capped at 20% of units per neighborhood; new certificates limited to 26 rental contracts a year. |
| Los Angelessource · 2026-09-09 | Home-Sharing Registration (Extended Home-Sharing for more than 120 days a year) | Not stated | Primary residence only; 120-day annual cap unless an Extended Home-Sharing registration is granted. |
| San Diegosource · 2026-09-09 | Short-Term Residential Occupancy License, Tiers 1–4 | Not a stated permit condition | Tier 3 whole-home licenses capped at 1% of housing units; Tier 4 Mission Beach is full with a waitlist. |
| San Franciscosource · 2026-09-09 | Short-Term Rental Certificate (host registration; business registration first) | Required — $500,000 liability, waived if every hosting platform used provides equal or greater coverage | Permanent residents only (275+ nights a year); un-hosted whole-home stays capped at 90 nights a year. |
| Big Bear Lakesource · 2026-09-09 | Vacation Rental License ($635; Home Share License option) | Required | Owners limited to two vacation rental licenses; inspection and annual certification exam required. |
Short-term rental insurance by city in California
What each market asks for, in plain words, so you can quote the right limit before you take on a home there.
Short-term rental insurance in Palm Springs
Palm Springs requires a permit: Vacation Rental Registration Certificate (also Homeshare and Junior Vacation Rental certificates). Proof of liability insurance is part of the permit: $500,000 liability per occurrence. Vacation rentals capped at 20% of units per neighborhood; new certificates limited to 26 rental contracts a year. A Velaris program issues the certificate Palm Springs asks for at the limit it names, and covers guest damage on every reservation.
Source, verified 2026-09-09Short-term rental insurance in Los Angeles
Los Angeles requires a permit: Home-Sharing Registration (Extended Home-Sharing for more than 120 days a year). The ordinance does not state an insurance condition. Primary residence only; 120-day annual cap unless an Extended Home-Sharing registration is granted. A Velaris program provides per-property liability with certificates on demand, and covers guest damage on every reservation.
Source, verified 2026-09-09Short-term rental insurance in San Diego
San Diego requires a permit: Short-Term Residential Occupancy License, Tiers 1–4. Insurance is not a stated permit condition, though owner agreements, lenders and HOAs usually require it anyway. Tier 3 whole-home licenses capped at 1% of housing units; Tier 4 Mission Beach is full with a waitlist. A Velaris program provides per-property liability with certificates on demand, and covers guest damage on every reservation.
Source, verified 2026-09-09Short-term rental insurance in San Francisco
San Francisco requires a permit: Short-Term Rental Certificate (host registration; business registration first). Proof of liability insurance is part of the permit: $500,000 liability, waived if every hosting platform used provides equal or greater coverage. Permanent residents only (275+ nights a year); un-hosted whole-home stays capped at 90 nights a year. A Velaris program issues the certificate San Francisco asks for at the limit it names, and covers guest damage on every reservation.
Source, verified 2026-09-09Short-term rental insurance in Big Bear Lake
Big Bear Lake requires a permit: Vacation Rental License ($635; Home Share License option). Proof of liability insurance is part of the permit. Owners limited to two vacation rental licenses; inspection and annual certification exam required. A Velaris program issues the certificate Big Bear Lake asks for at the limit it names, and covers guest damage on every reservation.
Source, verified 2026-09-09Snapshot for orientation, not legal advice. Short-term rental ordinances change frequently — verify current requirements with the relevant city or county, and see the full state-by-state guide for context.
The property manager's compliance checklist
Whatever the state, professional operators run the same loop for every market they enter. In California, start here.
- Confirm permit and registration requirements for every California market you operate in — rules can differ block by block
- Check each jurisdiction's insurance conditions: minimum liability limits, named additional insureds, and COI format
- Review your management agreements — owner-required insurance provisions apply on top of local rules
- Keep proof of coverage renewal-ready; lapsed COIs are a common cause of permit problems
- Watch for changes: STR ordinances are amended frequently, and what was compliant last season may not be now
Velaris programs handle the insurance side of this list: COIs on demand, limits that meet local mandates, and coverage across the whole portfolio.
California STR insurance questions
Is short-term rental insurance required in California?
There's no single statewide insurance mandate, but cities and counties set their own permit conditions — and a growing number ask for proof of commercial coverage. Check each market you operate in, not just the state. Snapshot for California: Regulations vary widely by city. Los Angeles, San Francisco, and San Diego each have distinct permitting and occupancy rules.
What insurance do California property managers typically need?
The professional baseline is commercial general liability for guest activity (jurisdictions that mandate coverage usually specify $300K–$1M per occurrence), property damage protection for the homes you manage, and the ability to issue certificates of insurance naming cities, HOAs, or owners as required. Company-level lines — E&O, workers' compensation — apply to the management business itself.
Can Velaris issue COIs that meet local requirements?
Yes. Velaris generates certificates of insurance from your dashboard with the limits, endorsements, and named additional insureds your jurisdiction requires, and monitors renewals so proof of coverage doesn't lapse mid-permit.
Which California cities require a short-term rental permit?
Among the state's largest STR markets, Palm Springs (Vacation Rental Registration Certificate (also Homeshare and Junior Vacation Rental certificates)); Los Angeles (Home-Sharing Registration (Extended Home-Sharing for more than 120 days a year)); San Diego (Short-Term Residential Occupancy License, Tiers 1–4); San Francisco (Short-Term Rental Certificate (host registration; business registration first)); Big Bear Lake (Vacation Rental License ($635; Home Share License option)). Of these, Palm Springs, San Francisco, Big Bear Lake also require proof of liability insurance with the permit. Verify with each city before applying; ordinances change often.
How current is this page?
This is a summary snapshot for orientation, not legal advice — short-term rental ordinances change frequently. Verify requirements with the relevant city or county before relying on them, and talk to us for the current picture across your portfolio.
Operating in California?
We track STR insurance requirements across all 50 states. Tell us your markets and we'll map coverage and COIs to what each one requires.
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