Airbnb and Short-Term Rental Insurance in San Diego: Coverage and City Rules

If you list a room, a condo or a whole house on Airbnb or Vrbo in San Diego, you are taking on two kinds of risk at the same time. The first is regulatory: the City of San Diego requires a license for almost every stay under a month, and whole-home licenses are capped. The second is financial: a standard homeowners policy may not pay when a paying guest gets hurt or damages the place. This guide to short term rental insurance in San Diego covers both, because in practice they are linked.

You’ll learn how the city’s four license tiers work, what hotel tax applies, what Airbnb’s AirCover does and doesn’t do, the main policy types hosts use, what coverage tends to cost, and the mistakes that leave hosts exposed. All figures are based on publicly available information as of the date of writing (September 2026) and can change.

Quick Answer: Inside City of San Diego limits, any stay of less than one month requires three things: a Short-Term Residential Occupancy (STRO) license, a Transient Occupancy Tax certificate and, for owners, an active Rental Unit Business Tax account. Airbnb’s AirCover for Hosts provides $1 million of liability insurance and up to $3 million of damage reimbursement. The damage part is not insurance, and it excludes earthquakes and normal wear. Most homeowners policies limit or exclude business use, so hosts typically do one of three things: add a home-sharing endorsement, move to a landlord policy with a short-term rental option, or buy a specialty short-term rental policy. Published cost estimates range from about $1,000 to $9,000 a year, depending on the property and the source.

How San Diego’s STRO License Works in 2026

San Diego doesn’t ban short-term rentals. It licenses them. The Short-Term Residential Occupancy ordinance, in Chapter 5, Article 10 of the San Diego Municipal Code, makes it unlawful to use a dwelling unit for short-term occupancy except as the article allows. The City Treasurer’s STRO page states that operating without a license has been unlawful since May 1, 2023.

“Short-term” has a specific meaning here. The ordinance defines it as occupancy for less than one month. A month runs from a check-in date to the same calendar date the following month. The Treasurer’s FAQ gives an example: a January 31 to February 28 stay counts as a month, but a February 1 to February 28 stay does not.

The four license tiers

Under the ordinance, a host can hold only one license at a time. A host can also operate only one dwelling unit as a short-term rental at a time within city limits. Licenses can’t be transferred to a new owner or a new address. The host must be a “natural person,” and the Treasurer’s FAQ confirms this means an LLC cannot be the licensed host, even if the LLC owns the property.

Tier	Who it’s for	Key rules	Cap	Fees (application + license, per 2-year term)
Tier 1: Part-time	Anyone renting 20 days or fewer per year	Host doesn’t need to live on site	Unlimited	$33 + $193
Tier 2: Home share	Host renting rooms in their primary residence more than 20 days a year	Host lives on site at least 275 days a year; may rent the whole home up to 90 days while away	Unlimited	$33 + $284
Tier 3: Whole home (outside Mission Beach)	Whole-home rentals over 20 days a year, host not on site	Two-night minimum; must be rented at least 90 days a year; quarterly reports	1% of city housing units	$41 + $1,129
Tier 4: Mission Beach whole home	Same as Tier 3, but in the Mission Beach planning area	Two-night minimum; 90-day use requirement; quarterly reports	30% of Mission Beach housing units	$41 + $1,129

Source: City of San Diego Office of the City Treasurer STRO page and SDMC §510.0104. Fees effective March 1, 2025.

Why the fee totals you see online don’t match

Some websites say a Tier 3 license costs $1,129, while others say $1,170. Both numbers come from the same city fee table. The lower figure is the license fee alone, and the higher one adds the $41 application fee. The same split explains Tier 1 ($193 vs. $226) and Tier 2 ($284 vs. $317).

How scarce whole-home licenses are

The city publishes live license counts. As of September 11, 2026, the Treasurer’s page showed:

Tier 3: 4,862 licenses issued, 799 remaining.
Tier 4: 1,099 licenses issued, none remaining.

The Tier 4 waitlist application period closed on August 15, 2025. The city says it will post an update once that waitlist is used up.

There’s also a gap in the middle of the tier system. The Treasurer’s FAQ states that whole-home rental of 21 to 89 days a year isn’t allowed. Tier 1 stops at 20 days, and Tier 3 and 4 holders must rent at least 90 days a year or risk losing the license. The city says the ordinance has no exceptions to the 90-day rule, even for cancellations.

Rules that trip up hosts

A few details matter for insurance as much as for compliance:

ADUs are off-limits. According to the Treasurer’s FAQ, the municipal code prohibits short-term rental of accessory dwelling units. The only exception is companion units permitted before October 15, 2017.
A local contact must respond within one hour. Under SDMC §510.0107, the host or a designated local contact must respond to complaints within an hour and act to resolve them.
Signs and guest notices are mandatory. Hosts must post an exterior notice showing the TOT certificate and license numbers. They must also give guests a Good Neighbor Policy and post human trafficking reporting guidance inside the unit.

The Good Neighbor notice must warn guests that the city can fine each guest, and the host, up to $1,000 for noise violations. The Treasurer’s summary of the platform rules also bars hosting platforms from completing a booking for a San Diego listing that lacks a valid license in the city registry.

One date to watch: a sunset clause ends the licensing requirement in the Coastal Overlay Zone on January 1, 2030, unless the ordinance is amended or the deadline is extended.

Taxes and Fees That Come With Hosting

Transient Occupancy Tax

Since May 1, 2025, San Diego’s Transient Occupancy Tax (TOT) has had three rates. Under Measure C, the city is divided into zones taxed at 11.75%, 12.75% and 13.75%. The Treasurer offers an interactive map to look up an address’s zone. Before May 2025 the rate was a flat 10.5%, which is why older guides still quote it.

Guests pay the tax, but the host carries the legal responsibility for it. The City Treasurer states that an operator who fails to collect TOT owes the tax as if the guest had paid it. Payments are due monthly, by the last day of the following month. Late penalties start at 1% and can reach 25%.

According to the Treasurer’s platform summary, a hosting platform must collect and remit TOT only when it collects the rent from guests. If you take any bookings directly, or through a platform that doesn’t remit, you have to collect and remit the tax yourself.

Cleaning fees can be taxable too. The Treasurer says a non-refundable cleaning fee counts as rent and is subject to TOT. A fully refundable fee, withheld only for specific damage, is not.

There’s also a San Diego-specific exemption. The TOT FAQ exempts guests traveling on official government orders, as well as rent paid directly by the U.S. government or the State of California. With the large Navy and Marine Corps presence here, hosts near bases may get these bookings. The city expects hosts to keep a completed exemption form in their records.

Rental Unit Business Tax and Business Tax

Owners who rent all or part of a property for more than six days in a calendar year owe the Rental Unit Business Tax. For a single-family home or condo, the city’s fee table shows a $50 base fee plus $5 per unit. A host who isn’t the owner also needs a Business Tax Certificate. It costs $34 a year for businesses with 12 or fewer employees.

Outside city limits

Everything above applies only inside the City of San Diego. In unincorporated parts of the county, the San Diego County Treasurer-Tax Collector collects TOT at 8% of rent, paid quarterly. Incorporated cities such as Oceanside, Carlsbad, Coronado and Chula Vista set their own TOT and rental rules, so hosts there should check with that city.

What Your Homeowners Policy May Not Cover

The National Association of Insurance Commissioners (NAIC) is blunt about this in its consumer guidance. Most homeowners or dwelling policies aren’t designed to cover accidents arising from short-term rentals. Insurers may deny coverage even when the policy has no specific home-sharing exclusion. The NAIC adds that if a property is listed with any frequency, there’s a good chance the policy will treat the activity as a home-based business.

California law also puts a warning in front of every host. Business and Professions Code §22592 requires hosting platforms to tell anyone listing a residence to review their homeowners or renters policy for restrictions on short-term rentals. The same notice tells tenants to check whether their lease allows it, since listing in violation of a lease could lead to eviction.

Where the gaps usually show up

Policy wording varies, so treat these as common patterns rather than rules. A licensed agent can tell you how your own policy handles each one.

Guest injuries. Suppose a paying guest slips on a wet tile floor. If the insurer treats hosting as a business, the claim may fall outside the personal liability section of a homeowners policy.
Guest theft and damage. Proper Insurance, a short-term rental insurer, says standard homeowners and landlord policies exclude theft, vandalism and malicious damage caused by guests.
Lost bookings. Homeowners loss-of-use coverage is built around your own living costs after a covered loss. It generally doesn’t replace rental income, which is why STR policies sell business revenue coverage separately.
Undisclosed use. A change in how a property is used is exactly the kind of fact insurers ask about. The NAIC advises hosts to talk to their agent or insurer before listing. Many hosts also ask for the insurer’s answer in writing.

If you rent your home from a landlord, your renters policy raises the same question, and your lease may prohibit subletting. Any host who isn’t the owner must also give the city a “right to occupy” document showing they are allowed to sublet for less than a month.

What Airbnb’s AirCover for Hosts Covers

Every Airbnb stay automatically comes with AirCover for Hosts. According to Airbnb’s Help Center, the program includes:

Guest identity verification and reservation screening.
$3 million in Host damage protection.
$1 million in Host liability insurance.
A 24-hour safety line.

Hosts don’t need to sign up, and it costs them nothing.

Host damage protection: reimbursement, not insurance

Airbnb states directly that Host damage protection “is not insurance or a financial service.” It reimburses up to $3 million for:

Guest damage to your home, furnishings and belongings.
Guest damage to parked vehicles or boats.
Certain extra cleaning, such as removing smoke odor or cleaning up after pet accidents.
Income lost when you have to cancel confirmed Airbnb bookings because of guest damage.

It does not cover normal wear and tear, lost cash, natural disasters such as earthquakes, injuries to guests or others, or routine check-out cleaning. The claims process also has firm deadlines:

File a request in the Resolution Center within 14 days of the guest’s checkout.
The guest then has 24 hours to respond.
If the guest declines or doesn’t pay in full, Airbnb reviews the request.

Host liability insurance: real insurance, with conditions

The liability part is an actual insurance policy. Airbnb’s program summary says it covers a host’s legal liability for injuries or property damage to guests or others during an Airbnb stay. The limit is $1,000,000 per stay, and defense costs are included. In the United States, Airbnb lists the insurers as Illinois Union Insurance Company, Generali US Branch or Assicurazioni Generali SpA. The current program term runs to at least June 30, 2027.

A few limits stand out:

Non-admitted carrier. Airbnb’s own disclaimer says the U.S. program is, in certain instances, written by a non-admitted insurer. That means it isn’t protected by a state insolvency guaranty fund.
Only Airbnb stays count. Coverage applies only during an actual stay booked through Airbnb. Direct bookings, Vrbo stays and no-shows aren’t covered.
Long list of exclusions. Excluded items include assault and battery, communicable disease, mold and bacteria, autos, most watercraft, and injuries tied to undisclosed or interior cameras.

Is AirCover primary or excess? Sources disagree

Some third-party guides describe AirCover liability as “excess” coverage, meaning it pays only after your own homeowners or landlord policy. Steadily’s short-term rental guide, by contrast, calls it up to $1 million of primary liability.

Airbnb’s own program summary, updated June 30, 2026, is narrower than either description. It says that from March 1, 2025, the rule changes only for hosts with six or more active Airbnb listings at the time of a loss. For those hosts, the program may require your other insurance to share the claim, or may pay only as excess, depending on how that other policy is worded. Airbnb also warns that failing to disclose other insurance may affect coverage.

In practice, the answer depends on how many listings you have and on the “other insurance” clause in your own policy. An agent can review that clause with you.

Feature	AirCover damage protection	AirCover liability insurance	Typical STR policy (varies)
Is it insurance?	No	Yes	Yes
Limit	Up to $3M	$1M per stay	Often $1M per occurrence; higher available
Covers non-Airbnb bookings	No	No	Usually yes
Earthquake	Excluded	Not applicable	Usually excluded
Lost booking income	Only after guest damage	No	Often included
Deadline to act	14 days after checkout	Report immediately	Per policy terms

Sources: Airbnb Help Center articles 279, 937 and 3145; Proper Insurance California page. The “typical STR policy” column reflects one specialty insurer’s published features and is not universal.

Your Insurance Options for a San Diego Short-Term Rental

There’s no single “Airbnb insurance” product. Most hosts end up with one of four setups, and each one suits a different kind of hosting.

1. A home-sharing endorsement on your existing policy

Some insurers let you add short-term rental coverage to a homeowners or landlord policy. For example, Mercury, a California insurer, lists a short-term home-sharing endorsement as an optional add-on to its California landlord policies for owners who rent through Airbnb or Vrbo. Availability, limits and eligibility rules differ by company, and some endorsements cap the number of rental nights.

This setup tends to suit Tier 1 and Tier 2 hosts who live in the home and rent occasionally. It may not suit a busy whole-home rental.

2. A landlord (dwelling) policy with a short-term rental option

For a property you don’t live in, the usual starting point is a dwelling or landlord policy, often called a DP-3. The base policy is designed for long-term tenants, so hosts typically need an STR endorsement or written confirmation that short stays are allowed. According to the NAIC, a landlord policy can cover the home, other structures, contents, lost rental income, legal fees and liability.

3. A specialty short-term rental policy

A few companies write policies designed only for vacation rentals. Proper Insurance is one example. It lists San Diego, La Jolla, Oceanside, Carlsbad and Encinitas among the California areas it covers, and it describes its policy as a replacement for a homeowners or landlord policy. According to Proper, the policy includes:

Commercial general liability starting at $1 million.
Replacement-cost coverage for the building and contents.
Business revenue coverage.
Add-ons such as liquor liability, liability for amenities like pools and hot tubs, and protection when a guest refuses to leave.

Proper says its policies are backed by Lloyd’s of London, which means they are sold through the “surplus lines” market. California Insurance Code §1764.1 requires buyers of these non-admitted policies to sign a notice. The notice explains that the insurer isn’t licensed by California and doesn’t participate in the state’s guarantee funds, so those funds won’t pay your claims if the insurer goes insolvent. That’s a trade-off to weigh, not necessarily a dealbreaker. The notice suggests checking whether the insurer appears on the Department of Insurance’s List of Approved Surplus Line Insurers.

4. California FAIR Plan plus a DIC policy

If no standard insurer will write the property, often because of wildfire risk, the California FAIR Plan is the insurer of last resort. The FAIR Plan’s dwelling policy is available for “seasonal rentals,” which it defines as dwellings rented in whole or in part for less than one year.

The FAIR Plan policy covers only named perils: fire, lightning, internal explosion and smoke. Vandalism can be added at extra cost. It doesn’t include liability coverage. For broader protection, the FAIR Plan directs owners to a separate Difference in Conditions (DIC) policy.

Option	Best fit	Main strengths	Main limitations
Home-sharing endorsement	Owner-occupants renting a room or occasional stays (Tier 1–2)	Keeps you on one policy; usually simplest	Night limits and exclusions vary; may not suit busy whole-home use
Landlord/DP-3 + STR option	Property you don’t live in, with modest STR use	Covers building, lost rent and liability	Base policy is designed for long-term tenants; STR use must be allowed
Specialty STR policy	Tier 3–4 whole-home rentals	Commercial liability, revenue coverage, guest-damage features	Often surplus lines (no state guarantee fund); can cost more
FAIR Plan + DIC	Hard-to-insure properties, such as high fire risk	Available when other insurers decline	Two policies to coordinate; FAIR Plan has no liability coverage

How Much Does Short Term Rental Insurance Cost in San Diego?

No official source publishes San Diego short-term rental insurance rates. None of the published estimates below describe a specific property or coverage limit either, so treat them as broad ranges rather than quotes.

What the published estimates say

AirDNA, a short-term rental data company, says in its insurance guide (updated May 2026) that STR policies run $1,000 to $2,000 per year.
Steadily, a landlord insurer, says in its guide (updated June 2026) that the average U.S. short-term rental policy costs $2,000 to $3,000 a year. It adds that the cost can reach $9,000 a year in popular destinations such as Florida or California.
Mercury, citing Policygenius, puts the average cost of California landlord insurance at about $1,728 a year. That figure covers landlord policies in general, not short-term rental coverage.

Why the numbers differ

These sources aren’t measuring the same thing:

AirDNA gives a national range with no stated property type, coverage limit or location.
Steadily adjusts for expensive destinations. It names location, rental frequency, deductible, replacement cost and amenities such as hot tubs, pools and fireplaces as the main price drivers.
Mercury’s figure is a statewide landlord average. It doesn’t reflect the added risk of frequent short stays.

For a San Diego host, the likely price drivers include:

Rebuilding cost, which is high in coastal ZIP codes such as 92109 and 92037.
Wildfire risk in inland and canyon areas.
How many nights the property is rented.
The liability limits you choose.
Whether there’s a pool or spa.

The only way to know your number is to get quotes for your address.

San Diego and California Risks to Plan For

Earthquake

Standard property policies, including most short-term rental policies, exclude earthquake damage. The California Department of Insurance (CDI) explains how coverage through the California Earthquake Authority (CEA) works:

CEA offers policies for homeowners, condo owners, mobilehome owners and renters.
You can buy it only through a participating insurer, and it must be the same company that writes your residential policy.
Deductibles run from 5% to 25%.
The minimum deductible is 15% for homes valued over $1 million, and for pre-1980 homes on raised foundations without a verified retrofit.

The CDI guide also notes that California homeowners and renters policies must cover fire damage caused by or following an earthquake. It adds that a few companies sell stand-alone earthquake policies, which don’t require buying homeowners insurance from the same company. The FAIR Plan likewise suggests adding separate earthquake coverage to its dwelling policy.

Wildfire

Inland and canyon-edge neighborhoods, such as Scripps Ranch, face more fire risk than beach areas. If standard insurers decline a property, the FAIR Plan plus DIC combination may be the fallback.

Condos and HOAs

Many beach and downtown listings are condos. The NAIC reminds hosts that HOA rules can restrict home-sharing. The association’s master policy also covers much of the building, so a condo host’s STR coverage needs to fit around it.

Long stays that turn into tenancies

Mid-term stays are common with traveling nurses and relocating military families. Once a stay reaches a full month, it no longer counts as STRO and isn’t subject to TOT under the city’s definitions. Proper Insurance warns that California’s tenant protections can then turn an overstay into a lengthy eviction (unlawful detainer) process. A few STR policies cover guests who won’t leave, which is one reason some hosts choose specialty coverage.

Worked Examples for San Diego Hosts

The numbers below are for illustration only. Revenue, nights and insurance premiums are assumptions chosen to show the math, not market data or quotes. City fees and tax rates come from the sources cited above.

Example 1: A Tier 2 home share in Clairemont

Maria owns and lives in a three-bedroom house in Clairemont. She rents one bedroom on Airbnb about 120 nights a year at $120 a night. She also rents the whole house for three weeks each summer while she visits family.

Room revenue: 120 × $120 = $14,400.
License: Tier 2, so $33 + $284 = $317 every two years, or about $159 a year.
Rental Unit Business Tax: $50 + $5 = $55 a year.
TOT: Guests pay it. If her address is in the 11.75% zone, each $120 night carries $14.10 in TOT. Airbnb collects the rent, so it collects and remits the tax. Maria is still responsible for TOT on any direct bookings.
Insurance: Her homeowners policy excludes business use, and her agent offers a home-sharing endorsement. For this example, assume the endorsement adds $400 a year to her premium.

Now suppose a guest trips on a loose stair runner and breaks a wrist, and the guest’s lawyer demands $60,000. Because the injury happened during an Airbnb stay, AirCover liability could respond. Her endorsement might also respond, depending on its “other insurance” wording. If she had no endorsement and the guest had booked directly, she could have had no coverage for the claim.

Example 2: A Tier 3 whole-home rental in Pacific Beach

James owns a two-bedroom house in Pacific Beach but doesn’t live there. He got one of the remaining Tier 3 licenses. He rents the house about 200 nights a year at $300 a night, split between Airbnb and direct bookings.

Gross rent: 200 × $300 = $60,000.
License: $41 + $1,129 = $1,170 every two years, or about $585 a year. He must rent at least 90 nights a year and file quarterly reports.
Rental Unit Business Tax: $55 a year.
TOT: Guests pay it. On direct bookings, James must collect it at his zone’s rate and remit it monthly. At 12.75%, that’s $38.25 on each $300 night.
Insurance: Based on the published ranges above, a specialty STR policy might cost anywhere from about $2,000 to $9,000 a year. For this example, assume $4,500, plus a separate earthquake policy he prices on his own.

Now suppose a guest’s party damages the deck and a TV, for $8,000 in total. James also cancels four booked nights, worth $1,200, while repairs are done.

If the guest booked through Airbnb: James has 14 days after checkout to request payment from the guest. If the guest doesn’t pay, he can file under Host damage protection, which can cover both the damage and the canceled bookings.
If the guest booked directly: AirCover doesn’t apply at all. Only his own policy’s guest-damage and business revenue coverage would help.

The lesson from both examples: AirCover follows the booking platform, while your own policy follows the property.

Step-by-Step: Setting Up Coverage and Compliance

Confirm the jurisdiction. Use the city’s Council District map to check whether the address is inside City of San Diego limits. If it isn’t, contact the county or the relevant city.
Pick the right tier. Match how you’ll actually use the home to Tier 1, 2, 3 or 4. Remember that whole-home rental of 21 to 89 days a year isn’t allowed.
Get a TOT certificate. The Treasurer says it’s free, and you need it before you apply for the STRO license.
Confirm your Rental Unit Business Tax account is paid. Hosts who aren’t owners also need a Business Tax Certificate and a right-to-occupy document.
Call your current insurer before listing. Ask whether short-term rentals are allowed, whether an endorsement is available, and whether there’s a limit on rental nights. Get the answer in writing.
Compare types of coverage, not just prices. Get quotes for the options that fit your tier. Ask each agent whether the insurer is admitted in California or sold through surplus lines.
Apply for the STRO license through the city’s Accela portal. Then post the exterior notice, the Good Neighbor Policy and the human trafficking guidance.
Set up your records. The ordinance requires hosts to keep booking dates, receipts and tax records for four years.

Common Mistakes and Money-Saving Tips

Mistakes that cost hosts money

Treating AirCover as a full policy. It covers only Airbnb stays, the damage protection isn’t insurance, and natural disasters are excluded.
Listing an ADU. It’s a city violation, and operating outside the rules can also complicate an insurance claim. A licensed agent can explain how your policy treats unlawful use.
Letting a Tier 3 license fall below 90 nights. The city says there are no exceptions.
Missing the 14-day Airbnb deadline. If you file a damage request late, you can lose access to Host damage protection for that stay.

Ways hosts keep costs down

Match the policy to how you actually host. An endorsement priced for occasional hosting usually costs less than a commercial STR policy, as long as it genuinely fits your use.
Cut back on risky amenities. Steadily lists pools, hot tubs and fireplaces as factors that raise premiums.
Reduce wildfire risk. The FAIR Plan offers discounts for wildfire mitigation work.
Retrofit an older home. The CDI notes that retrofitted older homes may qualify for CEA earthquake premium discounts of up to 25%.

Frequently Asked Questions

Do I need a license to rent my home on Airbnb in San Diego?

Yes, if the property is inside City of San Diego limits and stays are shorter than one month. The city requires an STRO license in one of four tiers, a Transient Occupancy Tax certificate and, for owners, a paid Rental Unit Business Tax account. Operating without a license has been unlawful since May 1, 2023. Unincorporated county areas and other cities have separate rules.

Does homeowners insurance cover Airbnb guests in California?

Often not fully. The NAIC says most homeowners policies aren’t designed for short-term rental accidents and may treat frequent hosting as a business. California law requires platforms to warn hosts to check their policy for restrictions. Some insurers sell home-sharing endorsements, so the answer depends on your specific policy. A licensed agent can confirm what yours covers.

Is Airbnb AirCover enough insurance for a San Diego rental?

It depends on how you host. AirCover includes $1 million of liability insurance and up to $3 million of damage reimbursement, but only for Airbnb stays. The damage part isn’t insurance and excludes earthquakes and wear and tear. Hosts who take direct or Vrbo bookings, or who want lost-income and disaster coverage, usually look at their own policy too.

How much is short-term rental insurance in San Diego?

There’s no official figure. AirDNA puts STR policies at $1,000 to $2,000 a year. Steadily cites a U.S. average of $2,000 to $3,000 that can reach $9,000 in California or Florida. Neither describes a specific property. Rebuilding cost, fire risk, rental nights, liability limits and amenities drive the real price, so quotes for your address matter most.

Can I get a Tier 3 or Mission Beach STRO license?

As of September 11, 2026, Tier 4 in Mission Beach was full, with zero licenses available, and its waitlist application period closed in August 2025. Tier 3 had 799 licenses remaining citywide on the same date. Availability changes, so check the City Treasurer’s STRO page for current counts before buying a property you plan to rent.

What is the hotel tax on Airbnb stays in San Diego?

Inside city limits, the Transient Occupancy Tax is 11.75%, 12.75% or 13.75%, depending on the zone. These rates took effect May 1, 2025, and the city offers an online map to find a property’s zone. In unincorporated San Diego County, the rate is 8%. Airbnb remits TOT when it collects rent, but hosts remain responsible for direct bookings.

Can I rent my ADU or granny flat as a short-term rental in San Diego?

Generally no. The City Treasurer says the municipal code prohibits short-term rental of accessory dwelling units. The only exception is companion units permitted before October 15, 2017. Neighbors can report suspected violations through the city’s Get It Done system. Renting an ADU long-term is a separate matter with different rules.

Does short-term rental insurance cover earthquakes?

Usually not. Standard property policies and most STR policies exclude earthquake damage. The California Earthquake Authority sells coverage only through participating insurers, and you must buy it from the company that writes your residential policy. A few companies sell stand-alone earthquake policies instead. An agent can explain which options exist for your property.

Can an LLC hold a San Diego STRO license?

No. The ordinance defines a host as a natural person, and the Treasurer’s FAQ confirms an LLC can’t be the licensed host. An LLC can still be the TOT “operator,” and an entity can own the property, but a named individual must hold the license. Insurance should match how the property is titled.

What happens if a guest won’t leave after 30 days?

Once a stay reaches a full month, it falls outside San Diego’s STRO and TOT definitions, and California tenant protections may apply. Removing the guest can then require a formal court eviction. Some specialty STR policies offer coverage for this situation. A landlord-tenant attorney can explain your options if it happens.

Conclusion

Short term rental insurance in San Diego isn’t a single product, and you can’t separate it from the city’s rules. Your license tier defines how the property will be used, and that use is exactly what an insurer needs to know. AirCover helps during Airbnb stays, but it follows the booking platform, not the property. Depending on how you host, a homeowners endorsement, a landlord policy with an STR option, a specialty STR policy or a FAIR Plan and DIC combination can fill the gaps.

A sensible next step is to look up your address on the city’s TOT zone map and review its license tier guide. Then call a licensed insurance agent with your tier, expected nights and booking channels in hand. They can tell you which type of coverage applies to you and what it will cost.

Sources

City of San Diego, Office of the City Treasurer. “Short-Term Residential Occupancy (STRO).” https://www.sandiego.gov/treasurer/short-term-residential-occupancy (accessed September 21, 2026)
City of San Diego. “San Diego Municipal Code Chapter 5, Article 10, Division 1: Short-Term Residential Occupancy.” https://docs.sandiego.gov/municode/MuniCodeChapter05/Ch05Art10Division01.pdf (accessed September 21, 2026)
City of San Diego, Office of the City Treasurer. “Transient Occupancy Tax (TOT)/Tourism Marketing District (TMD).” https://www.sandiego.gov/treasurer/taxesfees/tot (accessed September 21, 2026)
City of San Diego, Office of the City Treasurer. “Rental Unit Business Tax Fees.” https://www.sandiego.gov/treasurer/taxesfees/btax/rtaxfees (accessed September 21, 2026)
San Diego County Treasurer-Tax Collector. “Transient Occupancy Tax.” https://www.sdttc.com/content/ttc/en/tax-collection/transient-occupancy-tax.html (accessed September 21, 2026)
Airbnb Help Center. “Host damage protection.” https://www.airbnb.com/help/article/279 (accessed September 21, 2026)
Airbnb Help Center. “Host liability insurance.” https://www.airbnb.com/help/article/937 (accessed September 21, 2026)
Airbnb Help Center. “Host Liability Insurance Program Summary.” https://www.airbnb.com/help/article/3145 (accessed September 21, 2026)
National Association of Insurance Commissioners. “Renting Out Your Home? You Need Insurance Coverage for Home-Sharing Rentals.” https://content.naic.org/article/consumer-insight-renting-out-your-home-you-need-insurance-coverage-home-sharing-rentals (accessed September 21, 2026)
Justia. “California Business and Professions Code § 22592.” https://law.justia.com/codes/california/code-bpc/division-8/chapter-22-3/section-22592/ (accessed September 21, 2026)
FindLaw. “California Insurance Code § 1764.1.” https://codes.findlaw.com/ca/insurance-code/ins-sect-1764-1/ (accessed September 21, 2026)
California FAIR Plan. “Dwelling.” https://www.cfpnet.com/policies/dwelling/ (accessed September 21, 2026)
California Department of Insurance. “Earthquake Insurance” consumer guide. https://www.insurance.ca.gov/01-consumers/105-type/95-guides/03-res/upload/IG-Earthquake-Insurance-Updated-102924.pdf (accessed September 21, 2026)
Mercury Insurance. “Landlord Insurance in California.” https://www.mercuryinsurance.com/local/california/landlord-insurance/ (accessed September 21, 2026)
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AirDNA. “Short-Term Rental Insurance Guide: Coverage, Costs, and Providers.” https://www.airdna.co/blog/short-term-rental-insurance-guide (accessed September 21, 2026)
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Disclaimer

Disclaimer: This article is for general information and educational purposes only. It is based on publicly available information believed to be accurate at the time of writing, and rates, rules, products and eligibility requirements change frequently. It is not financial, insurance, tax or legal advice, and no advisor-client relationship is created by reading it. We are not licensed financial advisors, insurance agents, tax preparers or attorneys, and nothing here is a recommendation to buy, sell or hold any product, policy or security. Your own situation is different from the examples used here, so please consult a licensed financial advisor, insurance agent, tax professional or attorney before making any decision. We make no warranty as to the accuracy or completeness of the information and accept no liability for any loss arising from its use. Some links may be to third-party sites we do not control.

Internal Link Ideas

Homeowners insurance in San Diego: costs, companies and coverage gaps
Earthquake insurance in San Diego: CEA vs. private policies
Landlord insurance in San Diego for long-term rentals
The California FAIR Plan explained for San Diego homeowners
Umbrella insurance in California: who uses it and what it costs

External Authoritative Links

City of San Diego STRO program: https://www.sandiego.gov/treasurer/short-term-residential-occupancy
California Department of Insurance, Earthquake Insurance guide: https://www.insurance.ca.gov/01-consumers/105-type/95-guides/03-res/upload/IG-Earthquake-Insurance-Updated-102924.pdf
California FAIR Plan dwelling policies: https://www.cfpnet.com/policies/dwelling/