Carrollton, TX Short-Term Rentals: Insurance Requirements (2026)
Key Facts
- Minimum coverage
- $1,000,000 per occurrence
- Coverage type
- Host protection or liability insurance
- Proof required
- At application and every renewal
- Cancellation notice
- Must notify DCO within 30 days
- Adopted
- Ordinance 4291, Dec. 2, 2025
Summary
Carrollton requires every short-term rental and bed and breakfast to carry host protection or liability insurance covering at least $1,000,000 per occurrence before the city will issue a lodging license, and a current certificate has to stay on file with the Designated City Official every year.
Proof of insurance evidencing host protection or other liability insurance commensurate with the operations of the STR or B&B that provides coverage up to $1,000,000 ($1 million dollars) per occurrence. A certificate of insurance must be on file with the DCO. Proof of insurance shall be required at the time of application and every renewal period and notice of cancellation of insurance must be made to the DCO within 30 days;
Full Breakdown
25(C)(4) of the Carrollton Code of Ordinances requires a lodging-license applicant to submit proof of insurance evidencing host protection or other liability insurance commensurate with the operations of the STR or B&B that provides coverage up to $1,000,000 per occurrence, with a certificate of insurance on file with the DCO. The requirement is not a one-time filing: proof of insurance is due again at every renewal period, and if the policy lapses, the owner or operator must notify the DCO of the cancellation within 30 days.
25(B), the insurance certificate effectively has to be refreshed on the same cycle. 25 requires before the DCO will approve a license, and it applies equally to short-term rentals and bed and breakfasts since both fall under the same subchapter licensing structure adopted by Ordinance 4291 on December 2, 2025. 27, including the one-year bar on relicensing after revocation.
Violations & Fines
Operating without the required $1 million host protection or liability policy on file, or letting the coverage lapse without notifying the DCO within 30 days of cancellation as section 97.25(C)(4) requires, is grounds to deny a new lodging license under section 97.26 or revoke an existing one under section 97.27, with a one-year bar on relicensing the property as an STR or B&B after revocation.
Frequently Asked Questions
How much liability insurance does an STR need in Carrollton?
Do I need to re-file proof of insurance every year?
What happens if my STR's insurance lapses?
Sources & Official References
Other rules in Carrollton
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