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

Liability insurance is a mandatory condition of a San Mateo County Coastal Zone short-term rental permit. Under Zoning Regulations Section 6401.3(6)(k), each owner must maintain at least five hundred thousand dollars ($500,000) in liability insurance on the short-term rental while the unit is occupied by short-term tenants. This is a performance standard incorporated into every permit, so it must be kept in force on an ongoing basis, not just at application. The insurance requirement is also reflected at the application stage: Section 6401.3(4)(i) requires the applicant to submit proof of liability insurance for short-term rentals in compliance with the Section. Owners using hosting platforms should confirm whether any platform-provided coverage satisfies the County's $500,000 threshold or whether a separate policy or endorsement is needed, because the obligation rests on the owner. The insurance requirement sits alongside the ordinance's other safety-oriented standards - smoke and carbon monoxide alarms, at least one fire extinguisher per habitable level, and compliance with the California Residential and Fire Codes under Section 6401.3(6)(i) - which together must be satisfied before a permit issues. Because the County reviews outstanding compliance matters at application and renewal, lapses in required insurance could affect permit standing.