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

California has no statewide minimum-liability statute targeting short-term rentals. Cal. Ins. Code Division 2 governs property and casualty insurance generally but leaves coverage limits to the policyholder and insurer. Most standard homeowners' policies (ISO HO-3) exclude or limit coverage when a dwelling is used for business — including STR hosting — so operators commonly need a landlord policy (DP-3) or a dedicated short-term-rental endorsement. Hosting platforms provide limited host-protection coverage (Airbnb AirCover advertises up to $1 million in liability coverage; Vrbo offers a similar $1 million liability program), but these programs are excess and conditional, not primary, and exclude wear-and-tear, intentional acts, and certain claim types. Chico operators in HOA-governed communities should also check CC&Rs and the HOA's master policy. Wildfire risk in eastern Chico/Butte County WUI areas can make standard homeowner coverage difficult to renew and may push hosts onto the California FAIR Plan (PRC §10090 et seq.).