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

Cities that license STRs frequently require operators to carry liability insurance (commonly $500,000 or $1,000,000) and to name the city or list the coverage on the permit application. Tustin has no such requirement because it issues no STR permits and prohibits short-term rentals. Per the City's official FAQ, any residential rental under 30 days is a banned hotel/motel use in residential districts, so there is no application on which to demand proof of coverage and no City-mandated insurance minimum for a residential vacation rental. This does not mean insurance is irrelevant to property owners generally — standard homeowner's or landlord policies, and the host-protection coverage some booking platforms advertise, are private-market matters between the owner and the insurer, not City requirements. But there is no Tustin ordinance compelling STR-specific liability coverage, because the activity itself is not permitted. For lawful transient lodging, insurance obligations would arise from operating a hotel or motel business (driven by lenders, the franchise, and the operator's risk management), not from a residential STR rule. A homeowner renting long-term (30 days or more) is an ordinary landlord and should carry appropriate landlord coverage as a matter of prudence, but Tustin does not impose an STR insurance mandate.