Damage Protection can be an Important Component of Guest Retention

Most people naturally think that the primary purpose of damage protection is to cover the cost of repairs when a guest causes damage to the rental property.  It certainly does that, but its value is so much more.  

Having insurance in place eliminates potentially awkward conversations with your guest about damage; who caused it, what it costs and who going to pay for it.  With damage insurance, that conversation does not have to take place and the guest can depart having enjoyed their vacation experience and hopefully return in the future for another stay, helping to increase overall nights booked and revenue.

Consider the scenario where your cleaning staff calls to let you know that the guest broke an expensive lamp during their stay.  You’ve got to make the call to your guest to let them know that you need to retain some (or all) of their damage deposit to cover replacement of the broken lamp.  How many times have you heard the response “it was that way when we arrived, we didn’t break it.”  Perhaps it was one of the kids who didn’t say anything to the parents or maybe just a situation where the guest felt the cost of the stay was already expensive enough.  Regardless, you now have a situation where there is not going to be a winner, but instead everyone will lose.

With a protection plan in place, the claim process is easy … the lodging provider uploads a photo of the damage along with the receipt for repair and replacement and a check is sent to you for full reimbursement.  The guest benefits by transferring much of the risk to the insurance company as they pay a small damage waiver fee at the time of reservation. As the lodging provider, you didn’t have to have that conversation to let them know that their vacation is going to cost a little more than what was anticipated & budgeted. 

Fortunately, you put insurance in place with each reservation.  The guests in the above scenario departed happy and will be back again for another stay down the road!  Damage protection is like any insurance … it transfers financial risk to the insurance underwriter.  It’s not always needed but when accidents happen (and they will), everyone is happy the insurance is there.

Protection Brands provides damage protection underwritten by TERN Financial and administered by Rental Guardian.  Coverage can be purchased online at www.damageprotection.insure.  Lodging providers are encouraged to register as a Protection Brands partner at www.getdamageprotection.com and enjoy special pricing discounts.