Palm Springs, CA Short-Term Rentals: Insurance Requirements (2026)
Key Facts
- Insurance mandate
- Commercial policy covering short-term rental use
- Minimum limits
- Set administratively by the city manager
- Proof required at
- Registration application, Sec. 5.25.060(a)(9)
- Also required
- Executed indemnification/hold-harmless agreement
- Coverage scope
- Each registered vacation rental separately
Summary
Palm Springs vacation rental owners must carry commercial insurance covering the short-term use of their property. Municipal Code Sec. 5.25.070(u) requires the owner to "procure, maintain, and pay premiums" for a policy meeting minimum limits the city manager sets, and proof of that coverage is a required part of the registration application under Sec. 5.25.060(a)(9).
Evidence of insurance coverage as required under Section 5.25.070(v) of this chapter. ... Owner shall procure, maintain, and pay premiums for commercial insurance policies that cover short term rental of property for each vacation rental with minimum limits as may be established by the city manager from time to time.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4923139; v14 updated 2026-06-24).
Full Breakdown
25's operational standards treat insurance as a mandatory, ongoing condition of holding a vacation rental registration certificate, not a one-time application item. " That places the actual dollar minimums outside the code itself, in administrative rules the city manager is separately empowered to set under Sec. 070(t), covering registration conditions, reporting, and insurance requirements alike. The application stage cross-references this obligation: Sec. 070" as part of a complete registration application, submitted alongside an executed indemnification and hold-harmless agreement protecting the city, city council, and city staff from claims arising out of the owner's operation of the property.
Because coverage has to be maintained for "each vacation rental," an owner running more than one property, to the extent still permitted under the one-certificate-per-owner rule and its pre-2017 grandfather exception, needs a policy reaching every registered unit, and lapses in that coverage put the underlying registration certificate itself at risk since compliance with Sec. 070 in full is a condition of maintaining it.
Violations & Fines
Failing to procure or maintain the required commercial insurance is a violation of the chapter's operational requirements under Sec. 5.25.070(u) and exposes the owner to the general Chapter 5.25 penalty structure: an administrative citation of $500 for a first violation and $1,000 for each subsequent violation under Sec. 5.25.090(a), and a third violation of any provision within twelve months triggers a mandatory two-year suspension of the registration certificate under Sec. 5.25.090(b).
Frequently Asked Questions
Do I need insurance to run a vacation rental in Palm Springs?
What insurance documents does Palm Springs require to register a vacation rental?
What happens if my Palm Springs vacation rental insurance lapses?
Sources & Official References
Other rules in Palm Springs
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