Austin, TX Short-Term Rentals: Insurance Requirements (2026)
Key Facts
- Penalties
- $1M liability minimum
- Str-specific Endorsement Required
- STR-specific endorsement
- Certificate Uploaded Application/renewal
- Certificate uploaded at application/renewal
- Lapse Triggers License
- Lapse triggers license revocation
- Setbacks
- Platform coverage alone often insufficient
Summary
Austin STR licensees must carry at least $1 million in liability coverage specifically endorsed for short-term rental use, per City Code Chapter 25-2 Subchapter E. Proof of insurance is submitted with the annual license application and must remain in force throughout the license term.
In October 2025, the following changes went into effect for property owners and tenant operators: All licenses will now be valid for two years instead of one year. A Certificate of Occupancy and proof of insurance are no longer required for new applicants or renewals. Tenants may now operate STRs, with the permission of their landlord. [...] In February 2025, the Austin City Council adopted changes that made STRs an additional (accessory) use to all residential uses in all zoning districts as long as they have a valid operating license.
Full Breakdown
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.
Frequently Asked Questions
Does Airbnb's coverage satisfy Austin?
Will my homeowner policy work?
Sources & Official References
Other rules in Austin
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