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

Under Monterey Park Municipal Code Chapter 21.09, adopted in 2020 to regulate short-term rentals as potential public nuisances, an applicant for a short-term rental permit must file proof of homeowner's or renter's insurance for the rental unit with the application itself, per Section 21.09.070(4). The application must also include a nuisance response plan, a transient occupancy registration certificate from the Management Resources Director, and a $1,500 surety bond under Section 21.09.070(5). Once a permit issues, Section 21.09.100(C) makes the insurance a continuing condition: the permittee must provide the Director evidence that the short-term rental is insured with valid homeowner's or renter's insurance, alongside a hold-harmless agreement approved by the City Attorney indemnifying the City, its officers, employees and agents.

The Director, currently the City Planner unless otherwise designated by the City Manager, administers the permit program and may deny or revoke a permit that fails a general permit condition, including the insurance requirement. Operating or advertising a short-term rental without a valid permit is itself a separate violation of Section 21.09.030(A)-(B). Because Chapter 4.10 makes every code violation a misdemeanor unless otherwise specified, punishable by up to a $1,000 fine and six months in jail, a permittee who lets insurance lapse risks both permit revocation under Section 21.09.160 and criminal exposure, in addition to any administrative citation.