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

Under the Township's Short-Term Rental Maintenance and Use Agreement, adopted by the Development Standards Committee in late 2019 and administered by Covenant Administration, an operator must submit proof of insurance as part of the application package along with a signed agreement, designation of a primary and secondary local contact, and the $500 compliance deposit. The Township's published guidance directs that owners 'maintain appropriate property and liability insurance' for the duration of the one-year approval; the Township has not posted a specific minimum coverage limit such as $1 million general aggregate, so the prudent practice is to obtain a dedicated short-term rental policy or a homeowners endorsement that explicitly covers transient occupancy and commercial use, since standard HO-3 policies typically exclude business activity. Hosting-platform 'host protection' programs (Airbnb AirCover, Vrbo Liability Insurance) generally satisfy the Township's certificate requirement only when the platform issues a named certificate to the host; many operators carry a standalone Proper Insurance, Steadily, Slice, or CBIZ STR policy in addition. The certificate must remain current through renewal, which is annual; lapses are grounds for revoking the STR approval. Liability exposures the policy should address include guest bodily injury (slip-and-fall, pool/spa drowning, balcony or stair falls), guest-caused fire damage, dog bites, food contamination, and third-party damage to neighbors. Because The Woodlands' enabling legislation precludes ordinance-based penalties, the insurance requirement is enforced contractually through the Maintenance and Use Agreement and through forfeiture of the compliance deposit. Property Owners Associations in master-planned villages (e.g., Carlton Woods, Creekside Park) may impose additional insurance covenants on rentals beyond Township minimums.