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

Under Chapter 42A and the City's Short-Term Rental Program, applicants must demonstrate at least $1,000,000 in liability insurance covering the short-term rental use of the dwelling. Standard California homeowner's insurance (HO-3) often excludes 'business pursuits,' which most carriers treat short-term rental income as, so simply having a homeowner's policy is generally insufficient. Hosts typically meet the requirement by adding an STR endorsement to their homeowner's policy, purchasing a dedicated short-term rental policy from carriers such as Proper Insurance, Steadily, or CBIZ, or — for platform-only operators — relying on Airbnb's AirCover (up to $1,000,000 host liability and $1,000,000 host damage protection) or Vrbo's Liability Insurance (up to $1,000,000 per occurrence). Platform coverage applies only to bookings on that platform and excludes direct bookings, certain dog bites, intentional acts, and pollution claims, so hosts who advertise off-platform or take repeat guests directly should maintain primary insurance. The City pairs the insurance requirement with a hold-harmless / indemnification clause in the registration application, an annual $250 STR permit fee, a $50 business license, and registration of the local responsible contact. Tenant-hosts must also obtain owner authorization and a renter's policy acceptable to the property owner. Insurance proof typically must be on file at registration and renewal each year.