Insurance & Real Estate Taxes: TCH Requirements & 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. TCH works with partners familiar with the midterm rental model and with TCH owner needs and has requirements to manage owner properties.

🛡️ Insurance for Midterm Rentals

❗ What Texas Corporate Homes Requires on Your Policy

Your management agreement requires four endorsements in favor of Texas Corporate Homes, LLC:

• Additional insured: TCH is named on your policy, with at least $500,000 in liability coverage. This covers claims that arise from managing the home.
• Waiver of subrogation: your carrier gives up its right to bill TCH after it pays a claim.
• 30-day notice of cancellation: your carrier tells TCH 30 days before your policy cancels or does not renew, so we learn about a lapse before a guest is in the home.
• Primary and non-contributory: your policy pays first. This keeps a claim from stalling while two carriers argue over who owes what.

Which policy gets what

Your primary liability policy carries all four. That is whichever policy pays first on a liability claim: a dwelling or landlord policy (often a DP-3), a homeowners policy with a rental endorsement, or a commercial general liability policy.

Your umbrella policy carries one: TCH as an additional insured, follow-form. An umbrella is excess by design and cannot respond as primary, so we do not ask for the other three.

If your carrier declines any of the four, tell us which one.

📋 Copy this paragraph to request these changes from your carrier or insurance agent

I rent this property through a property manager, Texas Corporate Homes, LLC. Please add the following four endorsements in favor of Texas Corporate Homes, LLC to my primary liability policy for this property, and send me an updated certificate of insurance that shows each one:

1. Texas Corporate Homes, LLC as an additional insured.
2. Waiver of subrogation in favor of Texas Corporate Homes, LLC.
3. Thirty (30) days written notice of cancellation or non-renewal to Texas Corporate Homes, LLC.
4. Primary and non-contributory wording in favor of Texas Corporate Homes, LLC.

On my umbrella policy, please add Texas Corporate Homes, LLC as an additional insured on a follow-form basis. I am not requesting the other three endorsements on the umbrella.

Certificate holder: Texas Corporate Homes, LLC 8911 N Capital of Texas Hwy Ste 4200 Austin, TX 78759

If your carrier cannot add all four to the primary policy, please tell me which ones it can add and which it cannot.

Where to send the certificate

Email the certificate of insurance to ownerprogram@staytch.com.

Why we ask for these

Each endorsement covers a different gap:

• Additional insured puts TCH under your policy for claims that come out of managing the home.
• Waiver of subrogation stops your carrier from paying a claim and then billing TCH for it.
• Notice of cancellation means we find out your coverage lapsed before a guest is in the home, not after.
• Primary and non-contributory settles which policy pays first, so a claim does not stall while two carriers sort out who owes what.

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. 📈