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

DCMC Chapter 5.92, adopted by Ordinance No. 1440 effective January 1, 2021, regulates registration, primary residency, occupancy, taxes, and host responsibility, but does not impose a numeric minimum general-liability or umbrella insurance requirement. The Planning Division's STR Permit Application Checklist requires a signed Short-Term Rentals Operator Primary Residence Certification and Indemnification and Waiver Agreement, by which the host indemnifies and holds the City harmless from any claim, loss, or damage related to operating the STR. Standard California homeowner's insurance (HO-3 form) typically excludes or limits 'business pursuits,' which most carriers treat short-term rental income as. Hosts should notify their carrier in writing and either add a business-use endorsement or purchase a dedicated short-term rental policy (e.g., Proper Insurance, Steadily, CBIZ STR). Tenant-hosts must maintain renter's insurance acceptable to the property owner and have a notarized supplemental authorization form. Platform-provided protections — Airbnb's AirCover (up to $1,000,000 host liability and $1,000,000 host damage protection) and Vrbo's Liability Insurance (up to $1,000,000 per occurrence) — apply only to bookings made through that platform and do not replace the host's own coverage for direct bookings, period damage, or platform-excluded claims (e.g., intentional acts, certain pets, pollution). The 24/7 local responsible contact required under 5.92 is a separate requirement and is not a substitute for insurance.