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

Elk Grove Municipal Code does not currently impose a specific minimum liability insurance requirement for STRs (many California cities do mandate $500K-$1M minimums; check current code). Regardless, operators face substantial uninsured risk because standard California homeowner's policies (HO-3) typically exclude business use, including rentals of fewer than 30 days. An umbrella policy alone is insufficient because it follows underlying coverage. Recommended coverage: dedicated short-term rental policy (Proper Insurance, Safely, Slice, CBIZ) with at least $1M general liability, commercial contents coverage, replacement cost on structure, loss of rental income, and liquor liability if alcohol is provided. Airbnb AirCover for Hosts provides $1M liability and $3M damage protection but only for bookings made on Airbnb and with numerous exclusions. Vrbo Liability Insurance offers $1M through Generali but is also secondary. Mortgage lenders may require notification of rental use, and failure to disclose can void coverage or violate loan terms. HOAs often require operators to add the association as additional insured on liability policies.