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

The City of Waco's short-term rental licensing framework under Chapter 13, Article VIII (Sections 13-470 and 13-471) focuses on the Special Permit process, Life Safety Inspection, parking and density standards, occupancy limits, and Hotel Occupancy Tax registration rather than mandating a specific liability insurance threshold. The official STR License Application Checklist requires a site plan, parking documentation, signage plan, and Certificate of Occupancy (if applicable), but the city ordinance does not publish a fixed minimum liability coverage amount. Operators should not assume a standard HO-3 homeowners policy will respond to a guest injury or property damage claim arising from a paid stay - most homeowners policies exclude business or commercial use. Hosts typically secure a dedicated short-term rental policy, a landlord/dwelling policy with STR endorsement, or rely on platform-provided coverage (Airbnb's AirCover and Vrbo's Liability Insurance both include host liability up to USD 1,000,000 per occurrence, but only when bookings run through those platforms). Waco STR operators in the unincorporated McLennan County portions of the metro and those subject to lender, HOA, or condominium master policies often face contractual insurance minimums even when the city itself does not impose one. State-level Texas Hotel Occupancy Tax rules (6%) and Waco/McLennan local HOT (7% + 2%) apply regardless of insurance status.