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

Many California cities condition an STR permit on proof of $500,000 to $1,000,000 in commercial general liability coverage and naming the city as additional insured. Lodi has not adopted such a framework. The Phase 3 Incremental Code Update (adopted October 2025) added the term "short-term rental" to the definitions section at LMC 17.78.020 but did not adopt operational standards such as insurance, signage, or local-contact requirements. Operators instead obtain a home occupation permit, remit the 6% transient occupancy tax to the City of Lodi Finance Department, and comply with existing residential-district standards in LMC Title 17. Hosts should still verify that their homeowner policy supports short-term rental activity, since standard HO-3 policies often exclude business use; many California operators add a commercial liability endorsement, a separate landlord policy, or a short-term rental-specific policy. Platform-supplied protection programs, such as Airbnb's AirCover and Vrbo's Liability Insurance, may layer on top of host coverage but are not a substitute for a primary policy and are not city-required. Mortgage lenders, HOAs, and CC&Rs sometimes impose their own insurance or business-use restrictions independent of city rules.