Travel Insurance - Good Idea or Not?

Insurance is a means of protection against financial loss.  It is a form of risk management, primarily used to hedge against the risk of a potential or certain loss.  When you purchase insurance, you ‘transfer the risk’ because the insurer is taking the risk of the loss in exchange for a premium payment, which is typically a fraction of the loss amount.

Not always is insurance a necessity in travel.  The numbers show that stuff happens and you’ve got somewhere around a 20% chance of an event happening that could interrupt your travel plans or even cause you to cancel your trip.  Plans vary but typical covered events range from sickness, weather, death, accidents, flight delays and the like.  Additionally, insurance will provide other benefits like medical payments and emergency medical evacuations which can be very costly.

With only a 20% chance of something happening, that means 80% of the time you probably won’t require coverage.  But isn’t that the case with all insurance?  When you purchase homeowners insurance, you pray that your home won’t catch fire (odds are with you) or someone will get injured,  but it’s good to have the peace of mind knowing that if something happens, your insurance has you covered.

It’s no different with travel insurance.  If you are comfortable with the financial risk, then travel insurance may not be for you.  Your risk likely includes the out of pocket cost of lodging accommodations, flights and maybe some event reservations, all of which are typically non-refundable.  On the medical side, travel policies provide coverage up to $25,000 for medical expenses and up to $250,000 for emergency evacuation.

The cost for insurance is seven percent of the coverage amount.  So for $70, you can insure a $1,000 trip.  It's a relatively small price to pay as you don’t know when there will be an event that puts a crimp in your plans.  Often that event is something related to another family member who may not even be in your traveling party.

The bottom line is to assess your tolerance for risk and make a choice at the time of booking your travel.  Once something happens, it’s too late for travel insurance.

Protection Brands offers Travel Insurance in partnership with Rental Guardians InsureStays, underwritten by Nationwide Insurance Co.  Policies can be purchased on the web at www.travelprotection.insure.

Stuff Happens! Damage Protection results in $800 savings.

Broken glass cooktop

Accidents happen and when they do they can be expensive.  As a property manager, I got a call one day from a guest that they had dropped a skillet onto the cooktop resulting in broken glass! 
Fortunately, we insure all of our reservations with damage protection from Rental Guardian.  A call to the appliance repair folks and a new glass top was installed.  Reimbursement was easy as all had to do was initiate a claim online, uploaded a photo of the damage to their system, along with a copy of the repair bill and a check was received for the full amount of the $850 repair.

Damage isn’t always as simple as a couple of broken wine glasses or a towel bar torn from the wall.  Sometimes repairs can really add up.  This event turned out to be much better than it could have been as both the guest and property manager benefited from the implementation of our use of damage waivers in lieu of collecting and managing damage deposits.  We all left on good terms and my expectation is that we will see this guest again in the future in one of our properties.

If you are a vacation homeowner or property manager and would like to learn more about damage protection, visit www.getdamageprotection.com.

Integrating Damage Protection with Airbnb

There is a lot of talk in the Airbnb community about damage caused by guests and homeowners stuck with a repair bill. An option for vacation homeowners is to do as the professionals do and protect against the financial risks of damage by purchasing damage protection coverage.

What is Damage Protection?  It is a contents-only property protection program that provides first-dollar coverage for most “to-the-studs” contents damages including flooring, carpeting, dry-wall, appliances, furniture and other items that are part of the rental property. If accidental damage should occur during a covered stay, managers receive reimbursements covering the costs of repair and/or replacement of the damaged items.

The professionals buy coverage and pass along the cost to the guest in the form of a 'damage waiver' fee.  The challenge for those who list with Airbnb is there is no an easy way to add the cost as a fee to the reservation.  What you don't want to do is to add the fee as an Airbnb 'damage deposit' as those funds are collected and then returned to the guest at the end of the rental period. 

The only real way to add a damage waiver fee in their current system is to either increase the nightly rate or to add it to the cleaning fee.  In either case, you would want to let the guest know that included with their reservation is coverage against accidental damage.

Protection Brands provides their partners with suggested verbiage for their listings and rental agreements to make the process of adding additional protection easy.  Claims are filed online and reimbursement is made within 30 days.

To learn more about purchasing damage protection, visit www.protectionbrands.com or visit www.getdamageprotection.com.  Protection Brand Products are offered by Insure Stays Insurance Group, powered by the RentalGuardian.com platform. Damage Protection is underwritten by TERN Financial Group, a Lloyds of London coverholder.

Why Cancel For Any Reason Coverage?

Cancel For Any Reason (CFAR) coverage is optional coverage that wraps-around a traditional travel policy to provide greater flexibility for the traveler. This benefit comes with an additional charge over a standard policy, but includes extended coverage that many travelers find worthwhile.

Play Travel Protection Program is packed with valuable protection underwritten by Nationwide Insurance with thirty covered events that provides 100% reimbursement for canceled or interrupted travel plans.  It protects against the loss of pre-paid, non-refundable expense should you find that your travel plans need to be canceled or get interrupted mid-stream.  CFAR added flexibility provides the ability to cancel your trip for any reason or no reason at all!

Here are some common reasons why travelers opt for Cancel For Any Reason coverage:

• Traveler simply changes their mind and decides not to go on their trip.
• Unfavorable weather at the destination: poor snow on the ski slopes, predictions of rain for the golf trip
• A major work-related obligation arises that traveler must attend.
• A child has an unplanned can’t-miss sporting event.
• Traveler has a problem with their passport or travel visa.
• The family pet is sick and traveler can’t be away.
• And, many other unforeseen situations that could arise that are not covered by traditional travel insurance.

Unlike standard travel protection, CFAR comes with some added restrictions and limitations as follows:

• CFAR coverage is only available for purchase at the time of the initial trip deposit or 14 days thereafter.
• Cancellation with the travel supplier must be made at least 48 hours prior to the trip start date.
• Benefits are 100% reimbursement for a covered reason and 60% reimbursement for non-covered (CFAR) events

Life happens… and Cancel For Any Reason is there for you!

If travel protection is part of your travel plans, opt to purchase it at the time of your reservation and enjoy the added benefits at no additional cost.  For additional information, we encourage you to visit www.protectionbrands.com . 

Products offered by Insure Stays Insurance Group, powered by the RentalGuardian.com platform. Travel Insurance is underwritten by Nationwide® Mutual Insurance Companies and Affiliated Companies, Columbus, OH.

The Importance of Timing when Purchasing Travel Protection

Most folks purchase travel insurance at the time they make their initial travel plans, but that is not always the case.  There are some significant benefits that can be had when travel protection is purchased within 14 days of making the initial travel reservations.  Play Travel Protection from Rental Guardian offers coverage for pre-existing health conditions and the opportunity to consider a Cancel-For-Any-Reason (CFAR) policy during that 14-day window.

Travel insurance plans have an automatic exclusion for pre-existing conditions.  That means they do not provide coverage for an existing condition, which is defined as any injury, illness, disease or other medical condition that occurs prior to the travel plan’s purchase date and for which a person has had symptoms and sought diagnosis and is under medical treatment and/or prescribed medications.  It can run the gamut from high blood pressure, asthma, diabetes, cancer, old injuries and the like.

Our travel insurance plans cover pre-existing conditions by offering a waiver to the exclusion, but only if the insurance is purchase within 14 days of the initial trip deposit.   Having pre-existing coverage means that the medical coverage terms provided by your policy is in effect because the pre-existing exclusion is waived.

Our travel plans are ‘group’ plans covering everyone in the traveling party.  The reality is that the person making the arrangements for accommodations is likely not aware of the health history of his or her traveling companions, let alone their family members.  It very well could be that someone is being treated for a heath condition that could take a turn for the worse at just the wrong time, resulting in a wrinkle to the best laid vacation plans. 

A travel policy is a low-cost means for protecting against the loss of any non-refundable trip costs.  Like any insurance, a low outlay upfront can provide peace of mind for covering the unexpected, knowing that your financial investment is not at risk.  A standard group policy is just 7% of the desired coverage amount.  In the case of the Play Travel policy from Nationwide, it provides protection for 30 events ranging from injury, death, airline delays, auto accidents, job related issues and more.  A CFAR policy expands your options by providing you with the ability to cancel for reasons outside of the standard 30 coverage events.  CFAR coverage costs are 9.8% of the desired coverage amount.

If travel protection is part of your travel plans, opt to purchase it at the time of your reservation and enjoy the added benefits at no additional cost.  For additional information, we encourage you to visit www.protectionbrands.com. 

Products offered by Insure Stays Insurance Group, powered by the RentalGuardian.com platform. Travel Insurance is underwritten by Nationwide® Mutual Insurance Companies and Affiliated Companies, Columbus, OH.

Your Vacation - Protect against the Unexpected

Protection Brands is a RentalGuardian.com company offering protection against financial loss for vacationers and those who provide vacation housing. Our initial products include:

 

Travel Protection helps travelers prepare for the Unforeseen. Life throws enough curve balls our way and you don’t want to let unforeseen events ruin your vacation. One in six travelers experience unforeseen circumstances such as an illness, a storm, job change or some other events that can result in a cancelled or delayed trip and the potential loss of all or part of a vacation investment. Travel insurance is for the peace of mind in knowing that your prepaid, nonrefundable costs are protected should your vacation get interrupted or canceled for one of more than thirty common covered reasons. 

 

Damage Protection protects the vacation rental homeowner against accidental damage to a rental property during a guests stay. Damage Protection is in lieu of the traditional security deposit, where for a nominal non-refundable fee, it protects the guest for accidental damage up to the limit of coverage selected. Should damage occur, claims are processed online and the expense incurred for repairs or replacement is reimbursed to the property manager up to the limit of coverage selected which is either $1,500 or $3,000 in coverage.

 

Individual can purchase Travel Protection at www.travelprotection.insure. Vacation homeowners or property managers who wish to make it available to guests can do so by registering at www.offertravelprotection.com. Lodging providers can purchase Damage Protection by registering at www.getdamageprotection.com.

Products offered by Insure Stays Insurance Group, powered by the RentalGuardian.com platform. Travel Insurance is underwritten by Nationwide® Mutual Insurance Companies and Affiliated Companies, Columbus, OH. Damage Protection is underwritten by certain underwriters at Lyndon Southern Insurance Company. Products are available at www.ProtectionBrands.com and affiliated websites.