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

Liability insurance is part of Sacramento County's short-term rental framework for unincorporated areas. Published guidance on the County's program indicates that operators must carry liability insurance covering the short-term rental use of the property, with coverage commonly described in the range of $500,000 to $1,000,000 per occurrence. This protects against claims arising from injury to guests or damage connected to the rental activity, consistent with the County treating short-term rental as a regulated accessory commercial use of a residence. The insurance requirement sits alongside the County's other operational and application standards under Sacramento County Code Chapter 4.08 - including the documented parking, fire extinguisher and refuse locations, the 24-hour Local Contact Person, the posted information flyer, occupancy limits, and the primary-residence requirement. Because the precise minimum coverage figure and any required policy endorsements are established through the County's ordinance and the specific permit conditions rather than a single widely published headline number, operators should verify the exact required limit, acceptable proof of coverage, and whether the County must be named or notified, directly with the Office of Planning & Environmental Review or the Department of Finance before applying. Maintaining the required insurance for the life of the permit is generally a condition of keeping the short-term rental permit valid, so operators should keep proof of coverage current and aligned with the standards in effect when their permit is issued or renewed.