Tracy does not impose a city-mandated liability insurance minimum on short-term rental operators. The city has no STR-specific permit to which an insurance certificate could attach, only a TOT registration and standard business license. Hosts typically rely on platform host-protection programs or private commercial liability policies.
Many California cities (San Diego, Palm Springs, South Lake Tahoe) require STR operators to carry $500,000 to $1,000,000 in commercial general liability coverage as a permit condition. Tracy has no equivalent requirement because Tracy Municipal Code does not contain a dedicated short-term rental chapter establishing operating standards. The city's STR touchpoint is limited to Transient Occupancy Tax collection administered through tracy.hdlgov.com, which does not demand a certificate of insurance from operators. A Tracy business license is required for the commercial activity, but the city's standard business license process does not require STR-specific liability coverage. Platform-supplied programs such as Airbnb's AirCover for Hosts and Vrbo's Liability Insurance can supply baseline coverage, but they are private contractual programs, not Tracy ordinances. Hosts seeking adequate protection typically obtain a commercial dwelling or short-term rental endorsement on a homeowners policy, since standard HO-3 policies often exclude regular commercial rental activity. Mortgage lenders and HOAs may impose their own insurance conditions independent of city rules.
Lack of insurance is not itself a Tracy code violation, but failing to register or remit TOT, or operating without a business license, is enforceable. Uninsured operators face full personal liability for guest injuries, property damage, and third-party claims that platform protections may not cover.
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