Insurance Requirements: Redwood City vs San Mateo
How do insurance requirements rules compare between Redwood City, CA and San Mateo, CA?
San Mateo has fewer restrictions than Redwood City.
Redwood City, CA
San Mateo County
Redwood City requires short-term rental hosts to carry a minimum of $1 million in liability insurance covering STR operations as part of registration under Municipal Code Chapter 42A. This is in addition to the program's $250 annual permit fee, $50 business license, indemnification of the City, and the 12% Transient Occupancy Tax. Major hosting platforms supply broadly similar protection (Airbnb's AirCover up to $1 million, Vrbo's Liability Insurance up to $1 million), but platform coverage applies only to bookings made through that platform and does not satisfy the City's requirement for hosts who take direct bookings or use multiple platforms.
View full Redwood City rules →San Mateo, CA
San Mateo County
San Mateo's STR ordinance (Chapter 5.66) does not mandate specific minimum liability insurance as a condition of registration. Operators are encouraged to carry adequate coverage. Platform insurance (Airbnb AirCover) provides some protection but has limitations.
View full San Mateo rules →Key Facts Comparison
| Fact | Redwood City | San Mateo |
|---|---|---|
| Minimum Liability Insurance | $1,000,000 | - |
| Indemnification | Hold-harmless required at registration | - |
| Permit Fee | $250 / year (STR Program) | - |
| Business License | $50 / year | - |
| TOT Rate | 12% | - |
| Platform Coverage (typical) | Airbnb AirCover up to $1M; Vrbo up to $1M | - |
| Code Section | RCMC Chapter 42A | - |
| City Mandate | - | No specific insurance required |
| Recommendation | - | Adequate liability insurance advised |
| Airbnb | - | AirCover — $1M liability |
| Homeowners Policy | - | Often excludes STR activity |
| STR Insurance | - | Specialized policies available |
Highlighted rows indicate differences between cities.
Redwood City FAQ
Does Redwood City require a specific amount of liability insurance for STRs?
Yes. Chapter 42A requires hosts to carry at least $1 million in liability insurance covering short-term rental operations, demonstrated at registration and renewal.
Will my regular homeowner's insurance count toward the $1 million requirement?
Often not on its own. Most California HO-3 policies exclude 'business pursuits.' Add an STR endorsement, switch to a dedicated short-term rental policy, or stack platform coverage to reach $1 million.
Is Airbnb's AirCover enough to satisfy Redwood City?
AirCover provides up to $1M host liability for Airbnb bookings only. It generally meets the dollar threshold for Airbnb-only hosts, but does not cover direct bookings, off-platform listings, or all claim types.
What other costs come with the STR insurance requirement?
On top of insurance, hosts pay a $250 annual STR permit fee, a $50 business license, and remit Redwood City's 12% Transient Occupancy Tax on each stay.
San Mateo FAQ
Does San Mateo require STR insurance?
No. Chapter 5.66 does not mandate specific insurance. However, adequate liability coverage is strongly recommended.
Will my homeowners insurance cover STR guests?
Most homeowners policies exclude commercial activities like short-term rentals. Check with your insurer about an STR endorsement.
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