Insurance & Real Estate Taxes: TCH Recommendations on Managing Costs

🏡💼 Protecting Your Returns: Insurance & Taxes for Midterm Rentals

At Texas Corporate Homes (TCH), maximizing returns involves both revenue generation and managing major expense categories—insurance and property taxes. As part of the Owner’s Program, TCH works with partners familiar with the midterm rental model and with TCH owner needs.

🛡️ Insurance for Midterm Rentals

❗ Naming Texas Corporate Homes in the Policy

• Per the Owner’s Agreement, owners must name Texas Corporate Homes as an additional insured with a minimum liability coverage of $500,000 under the applicable policy.

The current insurance market presents challenges, with many carriers no longer writing rental home policies. Despite this environment, Stonebrook Insurance, LLC continues to provide options for TCH owners.

🤔 Why Midterm Rentals Are Different

Insurance carriers typically classify rental properties based on length of stay:

1. Tenant staying one week or less
   • Treated as a short-term or vacation rental
   • Higher-risk category with fewer carrier options
2. Tenant staying 30 days or more
   • The midterm rental category where TCH operates
   • Requires specialized underwriting with fewer accepting carriers
3. Tenant staying six months or longer (sometimes one year)
   • Considered a traditional long-term rental
   • Widest range of insurance options

⚖️ Options for Owners

• Standard Rental Policies

  Coverage availability varies based on the applicable length-of-stay category.

• Commercial Policies

  Often best suited for owners with 3–5 or more homes, sometimes offering additional flexibility and pricing benefits across multiple properties.

💡 Why Stonebrook Insurance

• Independent agency with access to a wide range of major insurance carriers
• Specialization in Auto, Home, and Commercial coverage
• Experience insuring midterm rentals in coordination with TCH owners

Contact Information

• 📧 service@stonebrookinsuranceagency.com
• 📞 (469) 942-7700
• 📱 Text: (325) 455-8981

💰🏠 Real Estate Taxes: Keeping Costs Down

While TCH focuses on revenue performance, property taxes are often among the largest ongoing expenses for real estate investors. Actively managing property tax assessments is an important component of overall cost control.

🧾 How Property Tax Consultants Work

• Specialize in ad valorem property tax protests
• Typically charge a contingency fee only if tax savings are achieved
• Savings may be meaningful in high-growth markets where assessed values increase frequently

📍 TCH Recommends Working With a Local Tax Consultant

Local consultants may provide market-specific insight into appraisal districts and assessment practices.

🚀 The TCH Advantage

Our Owner’s Program is built to make your investment turnkey and optimized. While we focus on occupancy, rate management, and property care, we also help you control the big-ticket expenses—insurance and taxes—that make the difference between average returns and great returns.

With the right team in place, your property will be positioned to maximize cash flow, equity growth, and long-term appreciation. 📈