Santa Barbara County, CA Short-Term Rentals: Insurance Requirements (2026)

Many jurisdictions require short-term rental hosts to carry a minimum liability insurance policy (commonly $500,000 to $1 million). Santa Barbara County's official Homestays FAQ does not state a specific insurance dollar amount or minimum policy limit for homestays. What the County does require as part of the application is an 'Indemnification Form' and an 'Agreement for Payment,' submitted along with the Land Use Permit and Homestay Supplemental Application. The indemnification requirement shifts liability and defense obligations onto the operator rather than the County, which functions as the County's risk-protection mechanism in place of a stated insurance floor. Hosts should also be aware that standard homeowner policies often exclude commercial short-term rental activity, so carrying appropriate liability coverage is prudent even where the County does not mandate a specific limit. Because the binding requirements are in the application forms and LUDC standards (Section 35.42.193, Lodging-Homestay), an operator should review the current Homestay Supplemental Application and Indemnification Form for any insurance-related conditions. California state law does not impose an STR insurance minimum on hosts directly. No fetched Santa Barbara County source establishes a specific insurance dollar requirement, so none is asserted here.