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

Unlike cities that issue an STR permit conditioned on a $500,000 or $1,000,000 commercial general liability policy, the City of San Marcos does not publish an STR-specific insurance minimum in the Municipal Code. STR operation in San Marcos is gated by zoning: Title 20 generally prohibits short-term rental use in residential zones unless authorized by an applicable Specific Plan, and where allowed the city imposes a one-per-block or one-per-660-foot density cap and 400-foot neighbor notification. A city business license is required, and stays of 30 consecutive days or fewer are subject to the 10% Transient Occupancy Tax. Because there is no citywide STR permit, there is no certificate-of-insurance demand from the city itself. Industry guidance for San Marcos hosts emphasizes that standard HO-3 homeowner policies commonly exclude commercial use, so operators typically carry a commercial general liability or short-term-rental-endorsed policy. Platform-supplied host protections such as Airbnb's AirCover or Vrbo's Liability Insurance do not satisfy the underlying zoning requirement and do not authorize the use.