Sunnyvale STR operators must carry liability insurance of at least 500000 dollars covering the rental use, or operate exclusively on a platform that provides equivalent host protection coverage.
Sunnyvale SMC 19.76 requires STR hosts to maintain liability coverage of at least 500000 dollars specifically covering short-term rental operations. Standard homeowner HO-3 policies typically exclude commercial rental activity, so a short-term rental endorsement or a dedicated STR policy (such as Proper or Safely) is usually required. Alternatively, a host can demonstrate that the booking platform provides equivalent host protection (Airbnb AirCover currently provides 1 million dollars in primary liability, which satisfies the requirement for stays booked through Airbnb). Proof of insurance must be submitted at application and kept current. Lapse of coverage is grounds for permit suspension.
Contact your local code enforcement office for specific penalty information.
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