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

The insurance requirement is buried inside Sec. 29-186, the short-term rental permit application process. ' That proof has to be submitted at the time of application, alongside the $480 nonrefundable permit fee set by subsection (c). The policy itself has to be built to protect the city's oversight: it must contain a provision requiring the insurer to give the director thirty days' notice before canceling, and separately, the owner or permit holder must tell the city about any cancellation notice they receive from their insurer within three days.

If the application is missing the insurance proof, Sec. 29-186(e) lets the director simply notify the owner or operator in writing that the application is incomplete rather than approve it. Because Sec. 29-190 requires any change of information in the application to be reported to the city within ten days and continuously updated, letting the coverage lapse or dropping below the required limit functions as a reportable change; combined with Sec. 29-195(a)'s revocation grounds for outdated or inaccurate required information, an unreported lapse can put the permit itself at risk on renewal or reinspection.