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

Under Encinitas Municipal Code Section 9.38.040, every short-term rental permit applicant must provide evidence of liability insurance for the property in an amount of at least $1,000,000.00 to cover the short-term rental operation. Coverage must be maintained continuously during the entire term of any permit issued by the city. If the policy is part of a broader general policy rather than a stand-alone STR policy, a copy of that general policy must be provided in lieu of an individual policy. If liability coverage expires within the permit term, the permit approval is automatically revoked unless evidence of renewal is provided to the city in advance of expiration. Permits run for 12 months from the initial date of issuance and must be renewed annually. Operators must also collect and remit the city's 10% Transient Occupancy Tax (of which 2% is dedicated to beach sand replenishment and stabilization projects), and pay the $425 annual STR permit fee plus the $39 new / $24 renewal business registration. Many platforms (Airbnb, Vrbo) provide host-protection policies, but those programs typically do not satisfy this $1M city requirement on their own; operators usually need a separate STR endorsement or commercial liability policy.