Insurance Requirements: San Diego vs San Marcos
How do insurance requirements rules compare between San Diego, CA and San Marcos, CA?
San Marcos has fewer restrictions than San Diego.
San Diego, CA
San Diego County
San Diego's STRO ordinance requires hosts to maintain active Transient Occupancy Tax (TOT) certificates and Rental Unit Business Tax accounts. Hosts who are not property owners must also hold a Business Tax Certificate and provide a right-to-occupy document. Liability insurance is strongly recommended though specific minimum coverage amounts are governed by platform requirements rather than the municipal code.
View full San Diego rules →San Marcos, CA
San Diego County
San Marcos does not publish a city STR liability-insurance minimum in the Municipal Code. Because STRs are generally prohibited in residential zones unless allowed by an applicable Specific Plan, there is no citywide STR permit to which a certificate-of-insurance requirement attaches. Hosts are typically advised to carry commercial general liability coverage because standard homeowner policies often exclude rental activity.
View full San Marcos rules →Key Facts Comparison
| Fact | San Diego | San Marcos |
|---|---|---|
| TOT Certificate | Active certificate required for all hosts | - |
| Business Tax | Rental Unit Business Tax account mandatory | - |
| Non-Owners | Business Tax Certificate + right-to-occupy document | - |
| Licensing | Non-transferable; one license per host | - |
| Effective Date | Licensing required since May 1, 2023 | - |
| City Insurance Minimum | - | Not published in code |
| Permit Pathway | - | Only via Specific Plan |
| Density Cap | - | 1 per block / 660 ft |
| Business License | - | Required |
| TOT | - | 10% on stays 30 days or fewer |
| Standard HO Policy | - | Often excludes STR activity |
| Platform Coverage | - | Not a substitute for compliance |
Highlighted rows indicate differences between cities.
San Diego FAQ
What insurance do I need to operate an STR in San Diego?
The STRO ordinance requires TOT and business tax compliance. Most hosting platforms provide host liability coverage, but additional landlord or short-term rental insurance is recommended.
How much are STRO license fees?
As of March 2025, application fees range from $33-$41 plus licensing fees of $193-$1,129 depending on the tier.
San Marcos FAQ
How much liability insurance does San Marcos require for short-term rentals?
The Municipal Code does not publish a citywide STR liability-insurance minimum. The city has no citywide STR permit, so there is no certificate-of-insurance demand at the city level.
Does Airbnb's AirCover satisfy local requirements?
Platform host-protection programs do not authorize the use. If your zone does not allow STRs under an applicable Specific Plan, no insurance product cures the underlying zoning issue.
Should I still carry commercial liability coverage?
Yes. Standard homeowner policies often exclude rental activity, and county- or platform-level expectations typically assume the host carries commercial general liability coverage.
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