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

Few Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Minimum Per Occurrence
$500,000
Aggregate
$1,000,000
City Named
Additional insured required
Proof
ACORD 25 certificate
Homeowner Policy
Usually insufficient alone

Summary

DeSoto STR operators must carry a minimum of $500,000 in commercial general liability insurance naming the City as an additional insured, plus proof of adequate property coverage. Platform-provided Host Protection does not satisfy the requirement alone.

Sec. 92.010. OCCUPANCY LIMITS. (a) Except as provided by Subsection (b), the maximum number of adults that a landlord may allow to occupy a dwelling is three times the number of bedrooms in the dwelling.(b) A landlord may allow an occupancy rate of more than three adult tenants per bedroom:(1) to the extent that the landlord is required by a state or federal fair housing law to allow a higher occupancy rate; or(2) if an adult whose occupancy causes a violation of Subsection (a) is seeking temporary sanctuary from family violence, as defined by Section 71.004, Family Code, for a period that does not exceed one month.(c) An individual who owns or leases a dwelling within 3,000 feet of a dwelling as to which a landlord has violated thi

Source: DeSoto Code of Ordinances - Chapter 30View official code

Full Breakdown

Chapter 30 Sec. 30-206 requires every permitted STR to maintain a commercial general liability policy with limits of at least $500,000 per occurrence and $1,000,000 aggregate. The City of DeSoto must be named as an additional insured on an ACORD 25 certificate, which is submitted annually with the renewal application. Homeowners' policies do not typically cover short-term rental activity; operators must obtain either a rider or a dedicated STR policy through carriers such as Proper Insurance or CBIZ. Airbnb's AirCover is considered supplemental only. Lapses in coverage automatically suspend the permit until reinstated.

Violations & Fines

Permit suspension on lapse; $500-$2,000 fine; personal liability for uncovered claims.

Frequently Asked Questions

Does Airbnb AirCover count?
AirCover provides supplemental protection but does not meet DeSoto's requirement of a policy naming the City as additional insured. You need a separate STR policy.
What if my insurance lapses?
The STR permit is automatically suspended. Operating during a lapse incurs fines and may result in permit revocation.

Sources & Official References

Other rules in DeSoto

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