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

40. The section requires the owner to obtain and maintain vacation rental property insurance that specifically covers the commercial lodging use of the site, not merely a standard homeowner's policy, since the code treats STLU rental as an inherently commercial use even though it takes place inside a residentially designed structure. Proof of that coverage goes to the Community Development Director or a designee, and the owner must resubmit proof annually, not just at initial permit issuance. This sits alongside a stack of other continuing operating conditions in the same subsection: a 24-hour emergency contact who must respond on-site within 30 minutes of a complaint, posting the permit and house rules inside the unit, notifying the Director and neighbors within 300 feet of the owner's and operator's names and phone numbers, and complying with fire and building codes.

The Director may also inspect the unit or audit its occupancy and rental records to confirm the STLU is operating within these standards, and failing to keep current insurance on file is treated the same as any other operating-standard violation for enforcement purposes.