Katy, TX Short-Term Rentals: Insurance Requirements (2026)
Key Facts
- Coverage Type
- General liability
- Proof Required
- At application and renewal
- Coverage Period
- Active during permit term
- Tied To
- Inspection and site plan
Summary
Katy requires every permitted short-term rental to maintain qualifying general liability insurance and provide proof of coverage during the application and renewal process.
Sec. 92.111. FEE IN LIEU OF SECURITY DEPOSIT. (a) If a security deposit is required by a residential lease, the landlord may choose to offer the tenant an option to pay a fee in lieu of a security deposit. If a landlord offers a tenant the option of paying a fee in lieu of a security deposit, the landlord:(1) shall offer the tenant the option to instead pay a security deposit; and(2) may not use a prospective tenant's choice to pay a fee in lieu of a security deposit or a security deposit as a criterion in the determination of whether to approve an application for occupancy.(b) At the time a landlord offers to a tenant the option of paying a fee in lieu of a security deposit, the landlord shall notify the tenant in writing:(1) that the tenant has the option to instead pay a securit
Full Breakdown
Under Article 4.10, an STR permit will not be issued or renewed unless the owner supplies documentation of qualifying general liability insurance covering the rental dwelling. Coverage must remain active for the life of the permit; lapses can lead to suspension. The insurance requirement is paired with mandatory site plans showing fire extinguisher locations, parking layout, and ingress/egress, demonstrating the city's intent to ensure both financial and physical safety standards are met.
Violations & Fines
Lapsed coverage, failure to provide proof during application or inspection, or operating without active insurance may result in permit denial, suspension, or revocation.
Frequently Asked Questions
What kind of insurance does Katy require for short-term rentals?
Will my homeowner's policy satisfy the requirement?
Sources & Official References
Other rules in Katy
Texas rules heatmap·Compare Katy to another location·View the Texas short-term rentals overview
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