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

Monterey County's vacation rental program is administered through County Code Chapter 7.120 (Vacation Rental Operation License), added by the 2024 inland ordinance (ORD 24-027) along with zoning sections 21.64.290 (inland) and 20.64.290 (coastal). The license requires applicants to submit detailed materials - site and floor plans, a home inspection report (including fire-extinguisher servicing), an operations plan, a parking plan, and evacuation information - and to register for Transient Occupancy Tax and a business license. Many short-term-rental ordinances in California also require operators to carry general liability insurance, and the County's application and inspection framework is consistent with that practice; however, the County's publicly summarized materials reviewed here do not state a specific liability-insurance dollar amount, so this site does not assert a fixed figure. Operators should verify the exact insurance requirement, including any required coverage amount and proof-of-coverage documentation, directly with the Monterey County Housing and Community Development Department or by reviewing the full text of Chapter 7.120 and the adopted ordinance. Regardless of the County mandate, hosting platforms and lenders frequently require short-term-rental or commercial liability coverage, and standard homeowner policies often exclude commercial rental activity, so carrying adequate coverage is strongly advisable. Because the ordinance is recently enacted and being implemented in phases (inland 2024, coastal 2025), applicants should rely on the County's current application checklist for the definitive insurance condition.