Arlington, TX Short-Term Rentals: Insurance Requirements (2026)

Arlington's short-term rental ordinance treats insurance as a registration prerequisite rather than an optional best practice. At the time of annual registration, operators must submit a certificate of insurance (COI) showing general liability coverage of at least the city's minimum (commonly set at $500,000 per occurrence, with some programs or HOA overlays requiring $1 million). The policy must name the operator, cover premises liability and short-term transient commercial use, and remain in force for the full registration term; if coverage lapses, the registration can be suspended. Standard homeowner HO-3 policies almost universally exclude short-term rental activity as business use, so hosts typically need one of three pathways: (1) a dedicated short-term rental policy from insurers like Proper Insurance, Slice, or CBIZ; (2) an HO-3 endorsement or rider specifically adding STR coverage (offered by some carriers like Allstate HostAdvantage); or (3) reliance on platform host protection (Airbnb AirCover $1M, Vrbo Liability Insurance $1M) paired with a landlord or DP-3 policy for the structure itself. Arlington accepts platform coverage at registration provided the certificate specifically lists the property address and the coverage limits, but experienced hosts generally layer their own policy over the platform coverage because platform coverage excludes intentional acts, certain liquor-related claims, and gaps when the host books off-platform. The ordinance also expects hosts to maintain coverage against claims by guests and by neighbors, and to post insurer contact information in the interior house rules packet.