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

Cities that license short-term rentals frequently require hosts to carry liability insurance (often $500,000 to $1,000,000) and to name the city as additional insured or indemnify it. Westminster has no STR insurance mandate because Chapter 9.74 of the Municipal Code prohibits residential transient use of 30 days or less. With no STR permit program, there is no application that could carry an insurance, indemnification, or proof-of-coverage condition - the use is not authorized under any circumstances. Section 9.74.020 makes it unlawful to offer, occupy, or advertise a residential dwelling for transient use, so an owner cannot satisfy the ordinance by purchasing short-term rental or homesharing liability coverage; obtaining insurance does not legalize a prohibited use. Hosts should also be aware that operating a banned STR may itself jeopardize standard homeowner's coverage, since the activity is unlawful under the Municipal Code, but that is a private-insurance consideration rather than a city requirement. The only lawful transient lodging - hotels, motels, and lodging houses expressly permitted by the Municipal Code - carries its own business-licensing and insurance obligations independent of any STR ordinance. The City's Planning Division confirms residential short-term rentals are not allowed.