Skip to main content
CityRuleLookup

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

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Minimum coverage
$500,000 liability
Alternative
Hosting platform coverage of equal or greater amount per transaction
When required
Must maintain at all times; proof required with permit application

Summary

Every home-share host must maintain a minimum of $500,000 in liability insurance covering home-sharing, or use a hosting platform that provides equivalent or greater coverage for each transaction.

§ 6.20.020(a)(9) Maintains liability insurance to cover home-sharing with minimum limits of not less than five hundred thousand dollars or conducts each home-sharing transaction through a hosting platform that provides equal or greater coverage.

Source: SMMC 6.20.020 Home-Sharing Authorization (Liability Insurance Requirements)View official code

Full Breakdown

The insurance requirement is self-executing: hosts who transact through a qualifying hosting platform (such as Airbnb's host protection program) can rely on that platform's coverage instead of purchasing their own separate policy. The requirement is specifically for home-sharing activities; standard homeowner policies often exclude short-term rental use. Proof of insurance must be included in the initial permit application and each renewal.

Violations & Fines

Failure to maintain required insurance is grounds for permit revocation. Operating without a required permit is punishable as an infraction (up to $750 fine) or misdemeanor (up to $1,000 fine and/or up to 6 months in County Jail).

Frequently Asked Questions

Does my standard homeowners insurance count?
The code requires insurance specifically to cover home-sharing. Many standard homeowner policies exclude short-term rental activity: check with your insurer.
If I use Airbnb, do I still need my own insurance?
No, if Airbnb's host protection provides at least $500,000 in coverage per transaction, that satisfies the requirement.
When must I show proof of insurance?
With your initial permit application and each renewal application.

Sources & Official References

Other rules in Santa Monica

All Santa Monica rules

California rules heatmap·Compare Santa Monica to another location·View the California short-term rentals overview

Get notified when Insurance Requirements in Santa Monica, CA changes

We'll email you the moment we detect a change in the code. No spam, unsubscribe anytime.

We'll never sell or share your email. One-click unsubscribe in every email.

See something wrong?

Help us keep this page accurate. If you notice an error or outdated information, let us know.

Insurance Requirements in Nearby Cities

How other cities in Los Angeles County handle insurance requirements.

Inglewood, CA
Some Restrictions
Long Beach, CA
Some Restrictions