Short-term rentals
Short-term rental insurance in Texas
AIV Insurance LLC · Updated · How we write these
Short answer. If you rent a Texas home to guests by the night or the week, tell your insurance company or your agent. The Texas Department of Insurance (TDI) says "most policies won't pay for damages or injuries that occur during short-term rentals" (TDI home insurance guide). You need a policy whose insurance company knows about the short-term use.
A platform's damage protection for hosts is not insurance. TDI also says landlord insurance "is mainly for traditional, long-term leases, and may not be appropriate for short-term rentals" (TDI, updated December 10, 2025).
"Short-term" means different things to different people
This trips up more hosts than anything else on this page:
| Who | What counts as short-term |
|---|---|
| City of Austin | "residences rented for less than 30 consecutive days" (City of Austin, read September 29, 2026) |
| City of Round Rock | "a period of less than thirty (30) consecutive days" (Round Rock FAQ, November 2025) |
| City of Georgetown | "no more than 30 consecutive days" (Georgetown STR FAQs) |
| At least one insurance company's application | "Is this a short-term rental (less than 3 months)?" |
So a 45-day furnished stay for a traveling nurse is not a short-term rental to the city, and is one on that application. Insurance companies do not all draw the line in the same place. Tell yours how long guests actually stay, and let it classify the rental.
Why your current policy may not respond
- Homeowners policy. It is written for a home you live in. TDI: "Most homeowners insurance won't cover damage to a rental property, or it might limit what it pays for. Ask your insurance company if you should add coverage for paying guests" (TDI). See Homeowners vs landlord insurance in Texas.
- Landlord (dwelling) policy. It is written for a tenant on a lease. Some insurance companies will cover short-term use if you tell them; others will not. A policy written for one use may respond differently to a loss that comes from the other.
- Nothing changed on paper, but the use did. A long-term rental that becomes a short-term rental between tenants is a change the insurance company needs to hear about, even if nothing else about the house changed.
What a platform's host protection is, and what it isn't
TDI notes that "some home-share websites and apps offer coverage" (TDI). Ask how it works with your own policy. On Airbnb, for example, the protection for hosts has two separate parts: a damage reimbursement program, which Airbnb calls "Host damage protection", and the platform's host liability program.
| The platform's damage reimbursement | The platform's host liability program | |
|---|---|---|
| What Airbnb says it is | "[It] is not insurance or a financial service" (article 279) | Insurance, up to $1 million (article 937), from insurers Airbnb names for the United States in its program summary (article 3145) |
| Covers | Reimbursement for guest-caused damage, up to $3 million, if the guest doesn't pay | A guest or others injured, or their property damaged or stolen, when you are found legally responsible |
| Does not cover (examples Airbnb lists) | "Damage from normal wear and tear"; "Loss due to acts of nature (ex: earthquakes and hurricanes)" | "Damage or injury resulting from something done intentionally"; damage to your place caused by a guest |
| Deadline | Request "within 14 days of the responsible guest's checkout" | Per the policy terms |
(Airbnb pages read September 29, 2026; the program summary, article 3145, was last updated June 30, 2026. Airbnb can change these terms.)
What this means in practice:
- Hail, wind, lightning, a burst pipe while the house is empty: none of these is a guest paying for damage, so none is what the damage reimbursement is for. Your own property policy is.
- A guest injured at the property: the platform's host liability program may respond. Its program summary says that for a host with 6 or more active listings (since March 1, 2025), it may share the loss with your own insurance or apply only above it (as excess), depending on your policy's wording. It also says the program is sometimes written by a non-admitted insurer (one not licensed in your state) and is "not protected by the insolvency guaranty fund" (article 3145). Carrying your own liability means you are not relying on a platform's terms alone. See Landlord liability insurance in Texas.
- Bookings from other platforms or direct: a platform's program applies to stays booked through that platform.
What to look for in short-term rental coverage
Where these usually fall short once the insurance company knows: Short-term rental insurance gaps in Texas.
| Question | Why it matters for a short-term rental |
|---|---|
| Does the policy know the house is rented short-term? | The single most important answer on the application |
| Liability limit, and whether it reaches injuries from things you provide that guests take off the property (kayaks, bikes) | Guests change often and use the pool, the stairs, the kayaks. Ask; don't assume |
| Your contents | A furnished short-term rental holds far more of your property than a long-term one |
| Theft by guests | Many dwelling forms exclude theft of your belongings. The TDI dwelling form excludes theft of property that isn't part of the structure (TDP-3). More on theft |
| Lost income | How it is measured, a fixed rental value or bookings actually lost, and for how long. How lost rent works |
| Pools, hot tubs, docks, water toys | Often asked about, sometimes excluded |
| Vacancy and freezing | Between seasons a house may sit empty. On the TDI dwelling form, after 60 days vacant, fire, lightning and vandalism are no longer covered; separately, freezing isn't covered while the house is unoccupied unless you kept the heat on or shut off the water and drained the plumbing. More on vacancy; the gaps to check |
| Wind and hail deductible | Same as any Texas house: usually a percentage of the dwelling limit. See how it works in dollars |
Do Austin, Round Rock or Georgetown require short-term rental insurance?
Checked September 29, 2026. City rules change; confirm with the city before you list.
- Austin requires a short-term rental operating license, but no longer asks for proof of insurance. The city says that since October 2025, "a Certificate of Occupancy and proof of insurance are no longer required for new applicants or renewals" (City of Austin). Many older articles still say Austin requires liability insurance for the license; that is out of date. A city not asking for proof doesn't make coverage optional: your lender, your HOA or your lease may still require it.
- Austin can have unlicensed listings removed. The city says that "on July 1, 2026 the City of Austin will begin requesting removal of unlicensed properties from STR platforms," and that platforms must "remove unlicensed listings upon request by the city."
- Austin's ETJ is different. The city says short-term rentals "located in the Extra Territorial Jurisdiction (ETJ) do not need a license or pay local Hotel Occupancy Tax."
- Tenants can operate short-term rentals in Austin with the landlord's permission. Landlords: if you allow it, your insurance company needs to know.
- Round Rock requires each short-term rental to be registered, with a fee (Round Rock FAQ, November 2025). The city's hotel-tax FAQ does not mention insurance.
- Georgetown requires a short-term rental permit (Georgetown STR FAQs). We found no insurance requirement in its FAQ.
Before you list, or before your renewal
- Tell your insurance company or your agent the house is (or will be) rented short-term, and how long guests stay
- Liability limit, and whether it reaches things you provide that guests take off the property
- A contents limit that reflects a furnished house
- Theft by guests: covered, limited, or excluded?
- Lost income: how it is measured and for how long
- Pool, hot tub, and anything guests can ride, float or climb
- The wind and hail deductible in dollars
- City license or registration, and HOA rules
At AIV Insurance we ask how your home is rented, and we check the options available to us for a home used for short stays.
Airbnb is a trademark of its owner. AIV Insurance is not affiliated with it.
Frequently asked questions
Does homeowners insurance cover an Airbnb in Texas?
Often not, or only in part. The Texas Department of Insurance says homeowners insurance "probably won't cover the costs if someone else gets hurt or causes damage on your property" when you rent to short-term guests (TDI). Ask your insurance company or your agent before your first booking.
Is landlord insurance enough for a short-term rental?
Only if the insurance company knows the house is rented short-term and has agreed to cover it that way. The Texas Department of Insurance (TDI) notes that landlord insurance "may not be appropriate for short-term rentals" (TDI).
Does a platform's host protection replace my own insurance?
No. Airbnb says its damage reimbursement for hosts "is not insurance or a financial service," and it excludes normal wear and tear and "acts of nature (ex: earthquakes and hurricanes)" (Airbnb). It also applies only to stays booked through that platform.
Does Austin require insurance for a short-term rental license?
Not as of September 29, 2026. The city says "proof of insurance" is "no longer required for new applicants or renewals" since October 2025 (City of Austin). You still need the license: the city says that on July 1, 2026 it "will begin requesting removal of unlicensed properties" from platforms. Your lender, your HOA or your lease may have their own insurance requirements.
What about 30-to-90-day "mid-term" rentals?
They sit between the lines. Cities around Austin treat stays of about a month or longer as not short-term (the exact cutoff differs), but at least one insurance company's application asks whether stays are under 3 months. Describe the actual length of stays and let the insurance company classify it.
Do I have to tell my insurance company if I only rent it out a few weekends a year?
Yes, tell them. Occasional paying guests are exactly the case where a policy may limit or exclude coverage, and the answer depends on the policy.
Does short-term rental insurance cover guests stealing things?
It depends on the policy. Many dwelling forms exclude theft of your belongings; some policies written for short-term rentals add it back. More on theft.
Sources
- Texas Department of Insurance, Renting out your home? Check your insurance (updated December 10, 2025)
- Texas Department of Insurance, Home insurance guide (cb025, updated June 1, 2026)
- City of Austin, Short-term rentals (read September 29, 2026)
- City of Round Rock, Hotel occupancy tax FAQ (November 2025)
- City of Georgetown, Short-term rental FAQs
- Airbnb Help Center, article 279 (Host damage protection; read September 29, 2026)
- Airbnb Help Center, article 937 (Host liability insurance; read September 29, 2026)
- Airbnb Help Center, article 3145 (Host liability insurance program summary, last updated June 30, 2026; read September 29, 2026)
- Texas Department of Insurance, Texas Dwelling Policy Form 3 (TDP-3, revised January 1, 2002), as mirrored by the Independent Insurance Agents of Texas
Last reviewed . Rules, figures and web pages change; the linked source is the authority.
Related guides
- Short-term rental insurance gaps in TexasGuest injuries, guest damage vs wear and tear, theft, cancelled bookings and condo rules: where platform host protection and a Texas STR policy fall short.
- Texas landlord insurance: what a DP-3 coversHow a DP-3 landlord policy works in Texas, what it usually leaves out (liability, theft, flood, foundation), and what to check before your renewal.
- Landlord liability insurance in TexasThe standard Texas dwelling form has no liability section. How to tell if liability is on your landlord policy, what it covers, and how much to carry.
- Vacant rental property insurance in TexasUnder the standard Texas dwelling form, fire and vandalism aren't covered after 60 days vacant. Freezing, renovations, and what to tell your insurer.