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

The publicly available Merced County short-term rental standards (Section 18.60.270) and the County's Transient Occupancy Tax program do not specify a fixed liability-insurance amount that every short-term rental operator must carry. Unlike some jurisdictions that require, for example, a minimum of one million dollars in commercial general liability coverage, the County's STR rules instead focus on the Administrative Permit, the five-bedroom guest limit, the primary-residence requirement (in residential zones), off-street parking, noise compliance under Section 18.40.050, and the 24-hour local contact. Because a short-term rental is approved through an Administrative Permit (Chapter 18.114), the Director has discretion to attach conditions of approval, which could include proof of insurance appropriate to the use; however, no countywide minimum insurance figure is set in the ordinance text. Hosts should independently verify that their homeowner's or landlord policy covers commercial short-term rental activity, since standard residential policies often exclude it, and should confirm current requirements with the Merced County Planning Department before operating. This information reflects the County framework for unincorporated areas only.