Short term rental insurance California hosts need is not the same as a standard homeowners policy—city permits, platform limitations, and perils like wildfire, earthquake, and flood change how your coverage must be built. This guide shows exactly what to carry as a California host: which core coverages actually pay, how platform protections really work, what cities expect, and the fine-print traps that lead to denials. You’ll also get a printable quote checklist to speed up placement. 

As an independent agency, Old Harbor Insurance Services helps hosts design layered programs that meet local rules, close platform gaps (especially for off-platform bookings), and protect bookings with proper loss-of-income coverage when the unexpected hits.

Do Homeowners Policies Cover STRs? Why One Paid Night Turns You into a Business

The biggest misunderstanding in this niche is assuming your traditional HO policy will behave the same once guests pay to stay. It usually won’t.

Business-use reality

Standard homeowners policies often exclude or strictly limit coverage once you’re running a lodging business, even occasionally. If a guest is a paying customer, your otherwise covered liability can be excluded.

Occasional vs. frequent hosting

Some carriers allow home-sharing endorsements for very occasional rentals; many require a dedicated STR/landlord form once renting becomes regular or the whole unit is offered. Disclose frequency and platform use up front.

Platforms ≠ your insurer

Platform protections apply only to bookings processed on that platform and only under its program rules. Direct bookings aren’t covered by platform programs.

California Compliance Snapshot: City Rules Real Hosts Actually Face

Local ordinances steer what paperwork you need—and sometimes what liability limit you must carry.

San Francisco (example with explicit minimums)

SF requires hosts to maintain at least $500,000 in liability coverage or use a platform that provides equal/greater liability. Business registration and other rules apply.

Los Angeles

LA’s Home-Sharing Ordinance focuses on registration, eligibility, and operating rules (primary residence, night limits). Insurance isn’t specified citywide, but you still need dedicated STR liability to satisfy risk and any HOA/manager requirements.

San Diego

STRO license required for rentals < 1 month, along with tax/registration steps. City pages emphasize licensing and compliance (not an explicit insurance minimum); dedicated STR coverage is still prudent.

Check your city’s portal and your HOA/manager agreements for required COIs, minimum limits, and additional insured wording.

Platform Protection, Decoded: What It Helps With—and What It Doesn’t

Treat platform programs as backstops—not your primary insurance.

Airbnb AirCover / Host Liability Insurance (HLI)

Includes $1M Host Liability Insurance, but coverage applies only to stays booked on Airbnb, for incidents during that Airbnb stay, and subject to program terms. It doesn’t extend to off-platform bookings.

Vrbo $1M Liability Insurance

Up to $1M per occurrence for stays processed through Vrbo checkout; aggregate caps and documentation requirements apply. Not a substitute for your own policy. vrbo+1

Common blind spots

Off-platform bookings, certain property damage types, guest-caused losses outside program scope, claims timing rules, and sub-limits for special items. Start with your own policy; view platform benefits as supplemental.

Core STR Coverages: Build the Policy That Actually Pays in California

Start with the right form and valuation, then add time-element and liability. The goal is a claim-ready program for both on- and off-platform bookings.

Dwelling/Building

Aim for special form (all-risk where available) and Replacement Cost on the structure. Keep limits current to avoid coinsurance penalties.

Contents / Business Personal Property

Cover furniture, linens, appliances, electronics, and supplies kept for guests. Inventory helps prove values and speed claims.

Liability (host/landlord-style + umbrella)

Premises operations for guest injuries; verify pools/hot tubs, balconies, bicycles/scooters, host liquor, and animals. Consider an umbrella to reach target limits demanded by HOAs, managers, or higher-end partnerships.

Loss of Rental Income / Business Income (ALS)

Protects bookings when a covered loss makes the unit unrentable. Prioritize Actual Loss Sustained (ALS) with a realistic time window rather than a tight monthly cap—you need the runway to repair, re-inspect, and re-list.

Ordinance or Law (A/B/C)

Pays to demolish undamaged portions, remove debris, and rebuild to current code after a partial loss—critical in CA where code upgrades can be the cost driver.

Equipment Breakdown

Adds protection for HVAC/boiler/electrical arcing losses that basic property forms handle poorly.

Bed bugs, squatters, theft by a guest

Often excluded on standard forms; some STR programs add limited sub-limits. Read endorsements carefully.

California Catastrophe Stack: Wildfire, Earthquake, Flood (and How to Add Them)

Standard homeowners/landlord forms typically exclude Earthquake and Flood; wildfire capacity varies by ZIP and brush exposure.

Wildfire

Capacity and underwriting have been tight in WUI areas; reforms aim to expand availability, but placement still hinges on defensible space and hardening evidence (photos, roofing, vents, clearance logs).

FAIR Plan (last resort) + Wrap

The California FAIR Plan provides basic fire coverage when you can’t secure a standard market. Many hosts pair FAIR Plan property with a wrap/DIC for broader perils and liability gaps. It’s a bridge—not a forever plan.

Earthquake (EQ)

Most property forms exclude earthquake/earth movement. Add via a standalone EQ policy or Difference-in-Conditions (DIC). Consumer-oriented CEA products are not designed for owners running STRs on a landlord/host basis.

Flood

For higher-risk zones, use NFIP or private flood; NFIP commercial caps are $500,000 building + $500,000 contents, so larger or higher-value STRs may layer. Mind waiting periods.

Liability Hot Spots for Hosts: Where Claims Get Expensive

The severity often hides in exclusions. Close these gaps before guest season.

Pools, hot tubs, and balconies

Require house rules, signage, fencing/locks, and anti-slip surfaces. Document inspections.

Security / Assault & Battery

A&B can be excluded or sub-limited; ask for a buy-back or specialty solution if exposure exists (urban settings, shared access, nightlife adjacency).

Animals & host liquor

Clarify breed restrictions and whether host liquor is included for events/celebrations.

Life-safety basics

Smoke and carbon monoxide alarms installed and maintained in line with CA codes; keep test/replacement logs on file.

Eligibility & Underwriting Traps: Small Setup Errors, Big Denials

Treat your STR like a business—because insurers do.

Misclassifying use

Trying to rely on a standard HO policy with silent home-sharing exclusions is a recipe for denials. Ask for a landlord/STR form and disclose occupancy patterns.

Off-platform bookings with no coverage

Platform liability applies only to on-platform stays; direct bookings need your policy to handle both property and liability.

Vacancy & protective safeguards

If your form lists alarms/sprinklers as Protective Safeguards, they must be operational. If a lull creates “vacancy” per your policy, certain perils (theft, vandalism, water) may be limited or excluded. Build an impairment/notification SOP.

How Much Coverage Do Cities/Platforms Expect?

We won’t guess at your premium. Instead, orient around the limits and documents most often requested.

Quote-Ready Checklist for California STR Hosts (Print-Friendly)

Send this once so your broker can move multiple markets without ten follow-ups.

  • Property address, use pattern (host-occupied vs. dedicated STR), average occupancy, share of direct bookings
  • Photos + COPE data (construction, occupancy, protection, exposure); pool/hot tub/balcony details; wildfire hardening/defensible space notes
  • Permits/licenses: SF certification, LA registration, San Diego STRO license, TOT/business tax numbers as applicable
  • Current policy & endorsements (home-sharing riders, umbrellas)
  • Loss runs or claim history; alarm certificates; vendor contracts; house rules & guest signage
  • Target limits: liability (often $1–2M plus umbrella), ALS months for loss-of-income, and your EQ/Flood decisions

Old Harbor, Your STR Coverage Architect

Short-term rental placement in California is part insurance, part compliance. Old Harbor translates city rules, platform quirks, and catastrophe exposures into a claim-ready setup that matches how you actually host.

How we set you up

  • Understand your use: host-occupied or dedicated STR, direct-booking share, HOA and city requirements, amenities, wildfire and EQ exposure.
  • Design the structure: special-form property at replacement cost, STR-ready liability with the right exclusions removed, Actual Loss Sustained for lost bookings, Ordinance or Law for code upgrades, EQ and flood via DIC or NFIP where needed.
  • Close operational gaps: smoke and CO alarm proof, pool and balcony rules, platform-gap audit, certificate package for HOAs or managers, naming additional insureds where required.
  • Stay ahead of renewals: pre-season reviews, document refresh, navigation of market shifts so you are never scrambling before a busy weekend.

Benefits you feel

  • Fewer denials: coverage mirrors real hosting, including off-platform bookings.
  • Protected revenue: ALS time windows that match repair and inspection timelines.
  • Faster approvals: COIs and compliance paperwork ready for cities, HOAs, and partners.
  • Less admin: one team that issues certificates, answers lender or manager questions, and keeps files current.
  • Better fit and terms: multi-carrier access improves coverage quality, not just price.
  • Real confidence: a program that survives inspections and claim adjuster scrutiny.

If you want this handled end to end, Old Harbor will assemble the documents, compare carriers, and deliver a clean, ready-to-use policy pack for your listings.

Conclusion — Make Your STR Claim-Ready

California short-term rentals demand purpose-built coverage. Start with the right STR/landlord form, add loss-of-income (ALS) to protect bookings, and close gaps around platform limits, life-safety, and amenities. Stack earthquake and flood the California way, and keep documentation ready for cities, HOAs, and platforms. 

If you want a program that survives both inspections and claims, contact Old Harbor Insurance Services. We’ll structure your policy for how and where you host, compare carriers, and issue the certificates you need—so your calendar stays full and your risk stays contained.

Frequently Asked Questions (FAQs)

1) Is Airbnb AirCover enough in California?

No. AirCover’s Host Liability applies only to stays booked on Airbnb and only under program terms. It’s a backstop, not a replacement for a dedicated STR/landlord policy—especially if you take direct bookings.

2) Do I need special insurance if I only rent a few weekends?

Yes. Even occasional paid stays are business use under many policies, triggering exclusions or narrow limits. Ask for a home-sharing endorsement or a dedicated STR/landlord form and disclose your pattern.

3) What liability limit should I target?

Use local cues. San Francisco requires ≥ $500,000 or platform-provided equivalent. Platforms offer ~$1M per booking; many hosts add an umbrella for higher limits and broader protection.

4) How do earthquake and flood fit into my program?

Standard property forms exclude EQ and flood. Add EQ via a standalone policy or DIC; buy flood through NFIP or private markets (note NFIP commercial caps).

5) Are smoke and CO alarms really an insurance issue?

Yes—life-safety is a liability flashpoint. California law requires CO alarms in residential properties; keep smoke/CO devices installed and maintained and retain test logs. It helps both underwriting and claim defensibility.