This past December, Chula Vista, California passed a new short-term rental ordinance and certain sections of this regulation went into effect on February 1st. One of the sections that took effect February 1st is Section 5.68.110 – Operational Requirements. This includes items such as 2-day minimum stays, safety requirements, insurance, quiet hours, maximum occupancies, and more. It’s important to understand the new regulations and ensure that you’re in compliance to avoid any fines.
Chula Vista, California Insurance Requirement
In the new vacation rental laws, the City of Chula Vista now has an insurance requirement stating:
“The permittee shall maintain and provide proof to City of liability insurance appropriate to cover the Short-Term Rental use in the aggregate of no less than one million dollars; or conduct each Short-Term Rental transaction through a Hosting Platform that provides equal or greater insurance coverage.” – Section 5.68.110.(D).
Chula Vista, California has made the smart decision including an insurance requirement within the new laws to ensure that you, as a host have proper protection, because operating a short-term rental business comes with increased risks. One of the biggest areas of risk exposure when running an Airbnb or Vrbo is liability. Liability becomes a risk the second you open your door to paying guests. If anything happens to your guests during their stay, whether it’s a slip on the stairs or fire in the suite, you as the host can be held liable. This is why it’s so important to have a policy that understands the risks of short-term renting and would have you properly protected, like a commercial general liability policy. Commercial general liability is found in business insurance policies and protects the insured against claims of bodily injury or property damage they could be found legally liable for. At Proper Insurance, we understand the importance of a business policy and that’s why we’ve custom-written a commercial general liability policy specifically tailored to vacation rentals.
In the second part of the insurance requirement stated above, Chula Vista mentions a hosting platform’s insurance coverage. Before you rely on ‘insurance’ from booking platforms, we highly recommend that you read through the policy and understand what coverage it would provide. For example, Airbnb provides their hosts with the AirCover Protection Plan but this isn’t exactly insurance. The main thing that you need to know about AirCover is that it does NOT replace your current homeowner’s insurance and it’s simply a rebrand of the long-standing Host Protection and Host Guarantee, with the addition of a few coverages. We understand that insurance is confusing and that’s why we’ve written a blog explaining AirCover and what Airbnb hosts need to be aware of. Read here: A Deep Look Into Airbnb’s AirCover Protection.
Avoid Fines Due to ‘Quiet Time’ or ‘Noise Disturbance’ Violations With a Noise Monitoring Device
Don’t let rowdy guests put your business at risk by attracting the attention of angry neighbors or the authorities due to high levels of sound. While you never know who will be staying at your vacation rental, there are other ways to minimize the risk of excessive noise coming from your property. Proper Insurance understands how common excessive noise or unwanted parties can result in the loss of your rental license or costly insurance claims and that’s why we’ve partnered with the leading privacy-safe noise monitoring device manufacturer in the short-term rental market, NoiseAware.
NoiseAware products have real-time privacy-safe noise monitoring to ensure that hosts and managers are the first to know when their quiet hours are violated. The innovative smart home sensors can measure the decibels and alert you when levels are too high.
Quote Your Short-Term Rental Today
Looking to fulfill the Chula Vista insurance requirement today with a policy that’ll protect you and your business from liability and damage claims? Proper Insurance leads the Nation in short-term rental insurance, with over 50,000 policies written in all 50 states. Backed by Lloyd’s of London and exclusive endorsements from short-term rental leaders such as HomeAway and Vrbo, Proper Insurance is built on world-class insurance coverage that meets and exceeds both city and lender requirements.