Franchised and independent hotels, motels and extended-stay properties across Texas and in most other states, from our home base near Austin. Real access to standard and specialty markets, fast quotes, and coverage that holds up when you file a claim.
Insuring a hotel in Texas has gotten harder. Carriers are raising rates, adding large wind and hail deductibles, cutting coverage for assault and trafficking claims, and non-renewing older properties. If your last renewal jumped or you just received a non-renewal letter, you are not alone, and you have options.
TWFG Khan Insurance is an independent agency. We don’t work for one insurance company. We shop your property with standard carriers and specialty (E&S) markets, so we can place hotels and motels that a captive agent often can’t. Based in Pflugerville, just north of Austin, we insure owners across Texas, from Austin, Houston, Dallas–Fort Worth and San Antonio to the motels along the I-35, I-10, I-45 and I-20 corridors. We are also licensed in most other states, so owners with hotels outside Texas can keep every property with one agency.
Get a quote or a free second opinion on your current policy.
Call 512-252-2618 or request a quote below. We serve Houston, DFW, San Antonio, Austin and El Paso and areas near I-35, I-10, I-45 and I-20 corridors from our offices in Pflugerville and Missouri City.
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Building / Property Insurance
Risk Factor
Is your building subject to severe weather events, fire, or burst pipes? Most are. These situations and others can cause significant damage to the structure leading to costly repairs.
Solution
Building coverage protects the permanent structure from most weather perils, burst pipes, a fire, and other losses.
Innkeepers Legal Liability
Risk Factor
You are required by law to keep your guests’ valuable personal items secure and safe, and you can be held responsible for loss or damage unless caused by an act of nature or the actions of the guest.
Solution
An innkeepers legal liability policy can protect against losses to your guests’ personal items when they are being stored in your hotel. Requirements vary by state, including maximum liability per guest, the types of items that are covered, where the item was stored, and the value of the item.
General Liability
Risk Factor
Water on the floor, slippery entry in the winter, broken glass/hazardous debris, etc. These are all accidents waiting to happen that make your business susceptible. Claims may arise due to bodily injury, property damage, personal injury, and more.
Solution
General liability insurance is an absolute necessity for any business. It provides broad coverage when you are deemed responsible and liable, and will also pay to defend any covered lawsuit or action regardless of its merit.
Liquor Liability
Risk Factor
Any establishment that sells, serves, or assists in the purchase or use of liquor is open to a liability claim as a consequence of someone getting inebriated to the extent that injuries or property damage result.
Solution
If you are in the business of selling or serving alcohol, it is critical that you protect your business from potential financial losses by being covered by a liquor liability insurance policy. Having the right policy in place could help cover your legal costs, court fees, and any civil or criminal damages stemming from an incident involving liquor.
Valet Parking
Risk Factor
Providing a valet service is convenient for your guests, but damaging a vehicle, property, or causing injury is a very real risk associated with it.
Solution
Obtain a general liability policy to protect your business from lawsuits by a third party. Be certain that a garagekeepers legal liability policy is in effect with adequate limits to cover any physical damage to your guest's vehicle or other vehicles on site. If you are using an independent valet service, obtain a certificate of insurance to verify they have the proper coverage with adequate limits. Also make sure that your business is named as an additional insured under their policy.
Cyber Insurance
Risk Factor
Hotels rely on technology to run almost every facet of their business and store sensitive information such as credit cards, passwords, and guests’ personal data. You are at risk if this information is lost, stolen, or compromised. You may be legally obligated to alert those impacted by the breach and possibly pay fines, restitution, and defense costs.
Solution
Experiencing a data breach is often not a question of if, but when. Securing a cyber liability policy can offer coverage for expenses associated with compliance regarding data breach notification laws, securing legal counsel to advise on incident response, credit monitoring service, and paying for regulatory defense, as well as penalties arising from privacy law violations.
Workers’ Compensation
Risk Factor
Most states require an employer to provide coverage for any injuries their employees experience while on the job, as well as any job-related illnesses.
Solution
Maintain workers’ compensation insurance to provide benefits to eligible employees, otherwise, you can be penalized for every day that coverage is not maintained, as well as for any benefits an employee would have been eligible for in the event of a job-related injury or sickness.
EPLI
Risk Factor
On average, it’s estimated that three out of five businesses will be sued by their employees. Hotels, just like any other business, are vulnerable from the pre-hire process through to a possible reduction in workforce. Claims can stem from just about anything, such as someone taking a “joke” the wrong way and being offended.
Solution
Coverage to protect you against this risk normally comes as a standalone policy. The right coverage is critical to your risk management process as it protects against discrimination, wrongful termination, sexual harassment, and other employment-related allegations. Typically, the policy will cover your business as well as your directors and officers. Third party coverage is an added option, usually accomplished via a policy endorsement, and addresses claims made by customers or vendors against you from acts committed by employees.
Business or Commercial Auto
Risk Factor
When you own or operate a vehicle for your hotel, you expose your business to liability risks to other drivers, property owners, and your own guests while being driven.
Solution
A business auto insurance policy should be maintained if the vehicles are owned by the company. If employees are using their own vehicles at any time as part of their job duties, then hired and non-owned auto liability coverage should be maintained. Both will defend you if you are named in a lawsuit as a result of an employee getting into an accident while working for you.
Business Income
Risk Factor
What would you do if a fire impacted your operations? Or what if a pipe leak caused an extended downtime of a significant block of rooms? These and other events can destroy your ability to serve guests and bring in revenue, which can have a major long-term impact on the viability of your hotel.
Solution
Business income insurance compensates you for lost income if the business cannot operate as normal due to damage that is covered under your commercial property insurance policy, such as fire or water damage. Business interruption insurance covers the revenue you would have earned, based on your financial records, had the incident not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.
Commercial Umbrella
Risk Factor
What happens when your business faces a large liability loss that exceeds the basic limit of your standard policy?
Solution
You should consider purchasing a commercial umbrella insurance policy which provides higher limits, typically between $2,000,000 and $10,000,000, and often broadened coverages. Coverage is extended over various policies, including general liability insurance, business auto, and directors and officers liability insurance.
Hotels and motels we insure.
- Franchised and branded hotels: limited-service, select-service and full-service
- Independent motels and roadside inns
- Extended-stay properties
- Boutique hotels and bed and breakfasts
- Hotels with restaurants, bars, pools, fitness centers or event space
- Older and exterior-corridor properties, and properties with prior claims
- Owners with multiple locations
- Hotels under renovation or new construction (builders risk)
Hotel and motel insurance coverage.
Every property is different, but most Texas hotel and motel owners need a combination of the following:
- Commercial property: building, furniture, fixtures and equipment (FF&E), and signs, written on a replacement cost basis with ordinance or law coverage for code upgrades after a loss.
- Business income: replaces lost room revenue and pays continuing expenses like payroll and loan payments while you rebuild after a covered loss.
- General liability: guest injuries from slips, falls, pools, parking lots and other premises hazards.
- Assault and battery / abuse coverage: many hotel policies exclude or limit these claims. We look for markets that actually cover them.
- Innkeepers legal liability: guests’ belongings in your care.
- Liquor liability: if you have a bar or restaurant, or serve drinks at a manager’s reception.
- Equipment breakdown: HVAC systems, PTAC units, boilers, elevators, laundry equipment and electrical systems.
- Workers’ compensation: housekeeping, maintenance, front desk and food service staff.
- Cyber liability: guest credit card and personal data, and ransomware that locks up your reservation or property management system.
- Employment practices liability (EPLI): harassment, discrimination and wrongful termination claims from employees.
- Commercial auto and hired/non-owned auto: airport and local shuttles, and employees running errands in their own cars.
- Garagekeepers: damage to guest vehicles if you offer valet parking.
- Commercial umbrella: extra liability limits to protect your assets and meet franchise and lender requirements.
- Flood: a separate policy, since property policies exclude flood.
- Crime and employee dishonesty: cash handling, theft and fraud.
What makes hotel insurance in Texas different.
Hail and windstorm.
North and Central Texas see some of the most frequent hail in the country, and many hotel policies now carry percentage deductibles, often figured as a percentage of the building’s insured value instead of a flat dollar amount. On the Gulf Coast, windstorm coverage may need to be written separately, including through the Texas Windstorm Insurance Association (TWIA) in designated coastal areas. We show you the actual dollar amount you would pay on a claim before you buy.
Freezes and power outages.
The February 2021 winter storm showed how fast burst pipes and power loss can shut down a property. We review utility service interruption, water damage and business income waiting periods so a freeze doesn’t turn into an uncovered loss.
Flooding.
Heavy rain events flood properties well outside mapped flood zones, especially in the Houston area. Flood is excluded from standard property policies, so we quote it separately and help you decide on limits.
Human trafficking and assault claims.
Lawsuits against hotel owners over trafficking and assaults on the property have increased, and many carriers have responded with exclusions. We review your policy wording, look for markets that cover these claims, and help you document the staff training and security practices underwriters want to see.
Franchise and lender requirements.
Your brand agreement and your SBA or bank loan set minimum limits, deductibles and additional insured wording. Falling short can put you in default. We read those documents, not just your declarations page, and make sure your coverage and certificates match.
Austin and Central Texas hotels.
Our office is in Pflugerville, minutes from Austin, and we know the Central Texas market well, from downtown Austin to Round Rock, Georgetown, San Marcos and the I-35 corridor. Rapid growth has brought new construction, renovations and ownership changes, and each one comes with lender, brand and contractor insurance requirements we can help you meet. If you own in Central Texas, we can visit your property in person.
Hotels outside Texas.
Many Texas owners also have properties in Oklahoma, Louisiana, New Mexico and beyond. We are licensed in most states, so we can insure your out-of-state hotels too. That gives you one agency, one renewal plan and one point of contact for your whole portfolio.
Why hotel owners switch to TWFG Khan Insurance.
- More markets: standard carriers and E&S markets, so a non-renewal or a tough risk isn’t the end of the road.
- We read the fine print: franchise agreements, loan requirements and policy exclusions, not just the price.
- Fast certificates: quick COIs for your brand, lender and contractors.
- Claims advocacy: we stay involved after a loss and help you work with the adjuster.
- Renewal planning: we start 90 to 120 days before your renewal, so you aren’t forced to take whatever shows up at the last minute.
- One agency for every property: Texas and out-of-state locations together, plus your home, auto and life insurance.
How to get a hotel insurance quote.
- Send us the basics: property address, number of rooms, year built, roof age and recent updates, franchise or independent, annual revenue, and amenities like a pool, restaurant or bar.
- We shop the market: we take your property to the standard and specialty carriers that fit it.
- Compare your options: we walk you through the quotes side by side and explain the deductibles and exclusions in plain English.
Tip: sending your current declarations pages and five years of loss runs gets you the fastest and most accurate quote.
Get a second opinion on your hotel insurance.
Whether you own one roadside motel in Texas or branded hotels in several states, we’ll review what you have, point out the gaps, and show you your options. Call , email , or fill out the form below to get started.
Hotel and Motel Insurance FAQs
How much does hotel insurance cost in Texas?
It depends on the number of rooms, construction type, year built, roof age and condition, location (coastal wind and hail exposure), claims history, amenities like pools or bars, and the limits your brand or lender requires. Two similar hotels can see very different premiums. The fastest way to find out is to send us your current declarations pages and loss runs for a free review and quote.
My hotel insurance was non-renewed. What should I do?
Act early. Request your last five years of loss runs from your current carrier, gather your declarations pages, and contact us at least 60 to 90 days before the policy expires. As an independent agency, we can approach standard carriers and excess and surplus (E&S) markets that are built for properties that have been non-renewed, are older, or have had claims.
Does hotel insurance cover human trafficking or assault claims?
Not always. Many hotel liability policies now exclude or sharply limit claims involving assault and battery, abuse, or human trafficking. Lawsuits against hotel owners in this area have grown, so it’s important to know exactly what your policy says. We review these exclusions and look for markets that provide real coverage.
Is flood damage covered by my hotel property policy?
No. Standard commercial property policies exclude flood. Flood coverage is purchased separately through the National Flood Insurance Program or a private flood market. Many Texas hotels outside high-risk flood zones still flood, especially in the Houston area.
What is innkeepers legal liability?
It covers your legal responsibility for guests’ belongings while they are in your care, such as items in rooms, safes, or luggage storage. Most general liability policies do not cover this, so hotels and motels need it added separately.
Do I need workers’ compensation for my hotel in Texas?
Texas is the only state that lets most private employers choose not to carry workers’ compensation. But employers who opt out (non-subscribers) lose important legal defenses if an employee sues over a workplace injury, and many franchise agreements and lenders require it. For housekeeping and maintenance staff, workers’ comp is usually the safer choice.
Can you meet my franchise brand’s insurance requirements?
Yes. Brand agreements and loans usually specify required limits, umbrella coverage, deductibles, and additional insured wording. We review your franchise agreement and loan documents and make sure your coverage and certificates match before your brand audit or closing.
Do you insure hotels outside the Austin area or outside Texas?
Yes. Our office is in Pflugerville, near Austin, but we insure hotels and motels across Texas, including Houston, Dallas–Fort Worth, San Antonio, El Paso, the Rio Grande Valley, the Gulf Coast, and smaller towns along I-35, I-10, I-45 and I-20. We are also licensed in most other states, so we can insure your out-of-state properties under one agency.
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