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

The Austin STR ordinance requires operators to maintain continuous general liability insurance with a minimum $1,000,000 per occurrence, with a specific endorsement acknowledging commercial short-term rental activity — standard homeowner policies typically exclude STR use and do not satisfy the requirement. The Certificate of Insurance must name the property address and be uploaded to the Austin STR license portal at application and renewal. Many operators satisfy this through platform-provided coverage (Airbnb AirCover, Vrbo Liability Insurance) combined with a host-focused carrier (Proper Insurance, Safely, CBIZ) to fill gaps. Lapse of coverage is grounds for license revocation. Texas Insurance Code does not preempt this requirement. Additionally, HOA and condo regimes often require naming the HOA as additional insured. Operators should confirm that Texas Property Code §92 tenant protections do not apply to STR guests (they don't — STR guests are licensees, not tenants), but premises liability under Texas common law does apply and is why the $1M minimum exists.