Bakersfield, CA Short-Term Rentals: Insurance Requirements (2026)

Unlike some California cities that require operators to show proof of at least $500,000 to $1,000,000 of liability coverage as a permit condition, Bakersfield has no ordinance mandating a specific insurance minimum for short-term rentals. However, California homeowner and renter policies (ISO HO-3, HO-5) exclude rental activity as a business pursuit, meaning guest injuries, fires, or theft may not be covered if the carrier learns the home is rented as an STR. California AB 38 (2019) concerns defensible space for wildfire-zone home sales and is not an insurance mandate for STRs, but it does make wildfire compliance a selling issue in Kern County foothill communities. Best practice is a commercial short-term rental policy from carriers like Proper, Steadily, or CBIZ with at least $1M per occurrence general liability plus replacement-cost property coverage. Hosts should also confirm umbrella coverage extends to commercial use. If the property is held in an LLC, the policy must name the LLC as the insured. Airbnb's AirCover (up to $3M host damage protection and $1M liability) is automatically included but pays secondary to the host's own policy.