Short-term rental insurance in Texas: what property managers need
No state-level STR regulation. Cities like Austin, San Antonio, and Dallas have their own permit systems.
There's no single statewide insurance mandate, but cities and counties set their own permit conditions — and a growing number ask for proof of commercial coverage. Check each market you operate in, not just the state.
The headline obligation to check first when adding Texas properties to your portfolio.
Cities in Texas with a proof-of-insurance rule
No longer required as a permit condition
Austin removed the proof-of-insurance requirement for new short-term rental license applications and renewals in October 2025.
The full city list, and what each certificate has to show, is on the certificate of insurance page.
Top short-term rental markets in Texas
The cities where Texas portfolios concentrate, and what each one asks of an operator before the first guest arrives. Insurance requirements shown are the city's stated permit condition; your management agreements and lenders will usually ask for more.
| City | Permit or registration | Proof of insurance | Worth knowing |
|---|---|---|---|
| Austinsource · 2026-09-09 | Short-Term Rental Operating License (Development Services) | Not a stated permit condition | October 2025 rewrite: two-year licenses, proof of insurance dropped, and platforms must delist unlicensed listings from July 1, 2026. |
| Dallassource · 2026-09-09 | Chapter 42B Short-Term Rental Registration — currently enjoined; the city is not issuing registrations | Not stated | The 2023 single-family zoning ban and registration remain blocked by an injunction upheld in July 2025; a state supreme court petition is pending. |
| Houstonsource · 2026-09-09 | Short-Term Rental Certificate of Registration (Ordinance 2025-322, in force since Jan 1, 2026) | Not a stated permit condition | $275 per property per year, 24-hour contact required; platform delisting of unregistered units begins Jan 1, 2027. |
Short-term rental insurance by city in Texas
What each market asks for, in plain words, so you can quote the right limit before you take on a home there.
Short-term rental insurance in Austin
Austin requires a permit: Short-Term Rental Operating License (Development Services). Insurance is not a stated permit condition, though owner agreements, lenders and HOAs usually require it anyway. October 2025 rewrite: two-year licenses, proof of insurance dropped, and platforms must delist unlicensed listings from July 1, 2026. A Velaris program provides per-property liability with certificates on demand, and covers guest damage on every reservation.
Source, verified 2026-09-09Short-term rental insurance in Dallas
Dallas requires a permit: Chapter 42B Short-Term Rental Registration — currently enjoined; the city is not issuing registrations. The ordinance does not state an insurance condition. The 2023 single-family zoning ban and registration remain blocked by an injunction upheld in July 2025; a state supreme court petition is pending. A Velaris program provides per-property liability with certificates on demand, and covers guest damage on every reservation.
Source, verified 2026-09-09Short-term rental insurance in Houston
Houston requires a permit: Short-Term Rental Certificate of Registration (Ordinance 2025-322, in force since Jan 1, 2026). Insurance is not a stated permit condition, though owner agreements, lenders and HOAs usually require it anyway. $275 per property per year, 24-hour contact required; platform delisting of unregistered units begins Jan 1, 2027. A Velaris program provides per-property liability with certificates on demand, and covers guest damage on every reservation.
Source, verified 2026-09-09Snapshot for orientation, not legal advice. Short-term rental ordinances change frequently — verify current requirements with the relevant city or county, and see the full state-by-state guide for context.
The property manager's compliance checklist
Whatever the state, professional operators run the same loop for every market they enter. In Texas, start here.
- Confirm permit and registration requirements for every Texas market you operate in — rules can differ block by block
- Check each jurisdiction's insurance conditions: minimum liability limits, named additional insureds, and COI format
- Review your management agreements — owner-required insurance provisions apply on top of local rules
- Keep proof of coverage renewal-ready; lapsed COIs are a common cause of permit problems
- Watch for changes: STR ordinances are amended frequently, and what was compliant last season may not be now
Velaris programs handle the insurance side of this list: COIs on demand, limits that meet local mandates, and coverage across the whole portfolio.
Texas STR insurance questions
Is short-term rental insurance required in Texas?
There's no single statewide insurance mandate, but cities and counties set their own permit conditions — and a growing number ask for proof of commercial coverage. Check each market you operate in, not just the state. Snapshot for Texas: No state-level STR regulation. Cities like Austin, San Antonio, and Dallas have their own permit systems.
What insurance do Texas property managers typically need?
The professional baseline is commercial general liability for guest activity (jurisdictions that mandate coverage usually specify $300K–$1M per occurrence), property damage protection for the homes you manage, and the ability to issue certificates of insurance naming cities, HOAs, or owners as required. Company-level lines — E&O, workers' compensation — apply to the management business itself.
Can Velaris issue COIs that meet local requirements?
Yes. Velaris generates certificates of insurance from your dashboard with the limits, endorsements, and named additional insureds your jurisdiction requires, and monitors renewals so proof of coverage doesn't lapse mid-permit.
Which Texas cities require a short-term rental permit?
Among the state's largest STR markets, Austin (Short-Term Rental Operating License (Development Services)); Dallas (Chapter 42B Short-Term Rental Registration — currently enjoined; the city is not issuing registrations); Houston (Short-Term Rental Certificate of Registration (Ordinance 2025-322, in force since Jan 1, 2026)). Insurance is not a stated permit condition in these cities, but owner contracts, lenders, and HOAs usually require it anyway. Verify with each city before applying; ordinances change often.
How current is this page?
This is a summary snapshot for orientation, not legal advice — short-term rental ordinances change frequently. Verify requirements with the relevant city or county before relying on them, and talk to us for the current picture across your portfolio.
Operating in Texas?
We track STR insurance requirements across all 50 states. Tell us your markets and we'll map coverage and COIs to what each one requires.
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