Santa Maria, CA Short-Term Rentals: Insurance Requirements (2026)

Many California cities (for example, those with dedicated STR ordinances) require operators to maintain $500,000 to $1,000,000 in commercial general liability insurance and to name the city as an additional insured. Santa Maria's Municipal Code does not contain an equivalent STR insurance mandate; the city instead regulates lodging revenue through its Transient Occupancy Tax chapter and general business-license requirements. As a result, hosts inside Santa Maria city limits are not required to file a city-issued certificate of insurance. Adjacent Santa Barbara County's Short-Term Rental Ordinance, which applies in unincorporated areas, sets its own requirements and does not extend into the incorporated City of Santa Maria. Hosts should still review their homeowner or dwelling policy for STR exclusions, consider a commercial or short-term-rental endorsement, and understand the limitations of platform host-protection programs (such as Airbnb's AirCover or Vrbo's Liability Insurance), which are not substitutes for primary commercial coverage. Insurance posture should be re-checked any time the city's Planning Division updates STR-related guidance.