The Marble Falls City Council has unanimously voted in favor of new vacation rental laws on Nov. 16th and will take effect on January 1st, 2022. Within the new vacation rental laws, vacation rental hosts will be required to obtain a permit to operate their business within the city, which includes a requirement of $1M in liability insurance. Owners will also be required to register their properties with the city and follow all necessary guidelines to avoid a violation fine of up to $2,000.
New Vacation Rental Ordinance
The Marble Falls City Council has amended their Ordinance No. 2021-O-11A (pg. 50) in hopes of better-regulating vacation rentals in their city.
Section 3. (c). Short-Term Rental Standards
Part 3: Permit Application. Except as provided in this Article, every complete application for a short-term rental permit shall include the following information with such detail and in a form approved by the City Manager:
- The name, address, contact information and authenticated signature for the owner of the premises;
- The name, address and contact information of the operator, agent if any, and designated local responsible party as required in Section (4) below;
- The City registration number for Hotel Occupancy Tax;
- A plot plan of the premises identifying the location of parking spaces to be used in conjunction with the short-term rental;
- A dimensioned floor plan of the proposed short-term rental identifying bedrooms, other living spaces and emergency evacuation routes;
- Proof of insurance as required in Section (5) below;
- The name and contact information for the property owner’s association, if any, of which the premises is covered by the dedicatory instruments;
- A copy of the proposed host rules for the short-term rental; and
- Such certifications deemed necessary and proper to ensure compliance with the requirement of this Article.
Looking to read the full short-term rental law changes? Read more here, starting on page 50.
Marble Falls Evidence of Vacation Rental Insurance Requirement – $1M in Liability
“Part 5: Insurance. It shall be unlawful for the owner of premises operating as a short-term rental to operate without host protection or other liability insurance commensurate with the operations of the short-term rental that provides coverage of up to $1 million per occurrence. A certificate of insurance must be on file with the City. Proof of insurance shall be required at the time of application and notice of cancelation of insurance must be made to the City within 30 days.” – Ordinance No. 2021-O-11A
As you have read above, the new vacation rental laws state that evidence of coverage up to $1M in liability insurance to apply for a vacation rental license. Marble Falls has decided to implement an insurance requirement, so that you as a vacation rental host have proper protection because they have seen the risks one acquires when operating an Airbnb, Vrbo, etc.
What Liability Insurance Is Right for Me and My Business?
As vacation rentals continue to soar, city councils have started to realize how large of a risk it can be for the host. They understand that all vacation rental owners need to have insurance to protect them and their business but typically aren’t aware of the type of insurance that would provide proper protection when operating an Airbnb or Vrbo rental.
As a host, you’re running a business therefore a homeowner’s insurance policy would not be suitable in protecting you against claims because all homeowner’s policies carry a ‘business activity exclusion’. So, the second you would submit a claim mentioning ‘business activity’ your homeowner’s policy would deny you and you’d be left paying out of pocket. This is why as a host you need to ensure that your policy is tailored towards your vacation term rental business, like a commercial general liability policy. Commercial general liability policies are found in business insurance policies and will have you protected in the event of claims that you could be found legally liable for. Understanding the importance of the correct coverage, Proper Insurance has custom-written our own commercial general liability insurance policy specifically for vacation rental and Airbnb or Vrbo hosts, which would protect you and your business correctly.
Quote Your Vacation Rental Today
Liability is one of the biggest areas of risk exposure in the vacation rental market. With over 50,000 commercial general liability policies issued, Proper has witnessed the importance of a comprehensive policy when it comes to property damage and liability claims as a vacation rental host. Looking to fulfill the Marble Falls insurance requirement today? Proper’s policy will protect you and your business from liability and damage claims. Backed by Llyod’s of London and endorsed by Vrbo, you can rest assured that your property is covered with the most comprehensive policy in the industry.