Who Should Initiate Damage Coverage …the Lodging Provider or Guest?

If you look at Online Travel Agent's (OTA) like VRBO or AirBnb, they provide an option for the guest to purchase damage protection. While both parties benefit, we believe that is backwards.  It's the lodging provider who stands to suffer a loss in the event of guest damage and its best that they be the one to initiate coverage and receive the funds in the event of a claim. 

Traditionally, vacation rental owners have protected against accidents through the collection of damage deposits. The funds were held in escrow and the property was inspected at departure to ensure there was no damage resulting from the guest stay.  If not, the deposit was refunded. If yes, the lodging provider and guest have an unpleasant conversation about cost of repairs.

Today, the financial risk is taken on by the underwriter and the guest pays a fee equal to a fraction of the coverage amount.  Eliminated is the need to for the guest to come out of pocket with hundreds or thousands of dollars and the need for the lodging provider to manage those funds. The lodging provider purchases coverage and adds a fee, typically referred to as a 'damage waiver', to cover the expense of the policy. Both parties are protected. 

Damage protection should be put in place for every reservation.  You never know when an accident will happen, no matter how large or how small. Guests should be made aware that coverage is in place and set rental terms that require a guest to report damage.  We provide sample rental agreement terms to our participating partners.  Once damage is reported, an online claim is initiated including a photo of the damage and a copy of the receipt(s) for repair or replacement. 

Travel Insurance Explained

Travel Protection - Standard and Cancel For Any Reason (CFAR) Coverage.  Travel insurance is designed to cover the risks and financial losses you might incur while traveling, either internationally or domestically.  Unforeseen events can result in the need to cancel or cut short your travel and insurance is designed to reimburse you for losses you face for non-refundable costs such as lodging, airlines, cruises, excursions, events and more.  Included is reimbursement for medical costs, medical evacuations, flight delays and lost or delayed baggage. The coverage is underwritten by Nationwide® Mutual Insurance company, a trusted name since 1926 and covers all members of the traveling party (up to 20 ppl).

Should I purchase coverage?

The short answer is, it depends.  Travel insurance makes sense if you want to protect the money you’ve laid out for your vacation. But no one can blame you if you’re hesitant to add additional cost to your travel budget after paying for airfare, lodging, meals and activities. Still, if you prefer not to lose that money if something unexpected happens, travel insurance can be a smart investment.  

What travel insurance should you get?

Before looking into travel insurance, think about the reasons you might cancel. Are you traveling during hurricane season? Perhaps there are family members in ill health? Is it possible your school year will be extended, or you will your employer require you to work?  Maybe there is unrest in the country you’re going to visit? Are you nervous about the CDC issuing a travel warning for your vacation destination?  Concerned with airline cancellations happening more frequently?  These are all valid reasons for cancelling a trip or wanting insurance coverage. But not all travel insurance covers these concerns.

Standard travel insurance covers cancellation or interruptions due to more than 30 different events that could come up.  These events will reimburse you for 100% of your loss up to the coverage limit purchased. Cancel For Any Reason (CFAR) provides added flexibility providing everything in the standard policy PLUS  partial reimbursement (typically 60%) should you cancel for a reason not covered by the policy.  With CFAR, you don’t need a reason to cancel, however the decision to cancel for a non-covered reason must be made 48 hours prior to your trip start date.

What does coverage cost?

Travel insurance cost is based on the price of the trip and the coverage selected.  Coverage for the group, regardless of the age of the travelers, is 7% for standard coverage or 10.8% for Cancel For Any Reason (CFAR) coverage.  It can be a small price to pay to safeguard your investment for a short getaway or the trip of a lifetime.  Coverage can be purchased at www.travelprotection.insure and your policy is delivered by email to your inbox. 

About Protection Brands

Travel Protection products are offered by InsureStays agency and powered by the Protection Brands and RentalGuardian technology platform.   Insurance is underwritten by Nationwide® Mutual Insurance Companies. Coverage can be purchased at TravelProtection.insure