Simi Valley, CA Short-Term Rentals: Insurance Requirements (2026)

Many California cities condition an STR permit on commercial general liability coverage of $500,000 to $1,000,000. Simi Valley has no such requirement because section 9-22.030.A.1 of Title 9 (Development Code) does not list short-term rental as an allowable use, so there is no permit pathway to which an insurance certificate could attach. Between November 2024 and December 2025, city staff and the City Council advanced a draft licensing ordinance that would have required operators to carry liability insurance, obtain an annual permit and business tax certificate, comply with reporting and tax requirements, and follow operational standards including a 30-minute complaint response and prohibitions on parties and on hosting in garages, ADUs, accessory or temporary structures. On March 4, 2026, the Planning Commission voted 4-0 to recommend a citywide ban instead of the licensing program, citing enforcement and budget concerns (staff estimated roughly $321,300 in annual administrative cost against about $125,000 in projected revenue). Until the City Council acts otherwise, no STR insurance requirement is in force because no STR may operate. Platform host-protection programs (Airbnb's AirCover, Vrbo's Liability Insurance) do not authorize operation in Simi Valley and do not cure the underlying prohibition. For rentals of 31 days or more, ordinary landlord/dwelling insurance applies under standard California real-property practice; STR-specific rules do not.