How Guests Benefit from Damage Protection

When you think of damage protection, you might naturally think the property owner is the only one that stands to benefit. After all, the policy protects the property of the lodging provider. The reality is that accidents happen and repairs can be costly.  Add the cost of repairs to an already expensive vacation and its a recipe for stress.

There are endless examples of accidents.  They include red wine stains on couches and rugs, broken lamps, broken windows, a dropped skillet on a glass cooktop ... the list goes on.  Any of these can add up to a hefty price tag.  When you consider coverage that covered 100% of the repair was put in place for somewhere between $59-$79 the savings is considerable. 

Another benefit is the elimination of the upfront cost of damage deposits.  Lodging providers requirements vary but its not uncommon for damage deposits to be $500 or much more.  That's more cash needed to fund a vacation even with the promise of getting it back if there is no damage.

Lastly, guests are at the mercy of fairness and honesty.  Cleaning crews have been know to have an accident and report damage as guest damage.  The result is an argument over whether the guest was really the responsible party claiming the damage was not there when they checked out. It can be a uncomfortable (& costly) situation. 

Bottom line is both parties benefit when damage protection is in place.  

What is the Protection Brands Damage Protection Program?

The Protection Brands Damage Protection Program is designed to be an easy way for smaller lodging providers or rental guests to purchase a policy to protect against accidental guest damage during a vacation stay. The policy supplements or eliminates the need for damage deposits and protects both the guest and lodging provider when accidents happen by moving the risk to the underwriter for a fraction of the cost of what the out-of-pocket cost might be.

Coverage is available in two coverage limits; $1,500 or $3,000 and is underwritten by TERN Financial, a Lloyds of London cover-holder and administered by RentalGuardian.com.

Guest purchases are made online at www.damageprotection.insure without the need to speak with an agent. Coverage must be purchased prior to the start of the stay.  Lodging Providers are encouraged to become a registered partner for which they will receive benefits for reoccurring purchases.

Claims are handled online and include the need to upload photos of the damage and receipts for repair or replacement. Reimbursement is typically within 30 days of a completed claim and payment is 100% of the costs as there is no deductible.

Note: Property Managers with ten or more properties under management may be able to automatically put damage coverage in place directly through their software platform. Please contact us at 877 248-1275 x100 for information.

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.

Airline Shutdown Catches Travelers Off Guard

 Travel insurance protects against financial loss for the unexpected.  It's doubtful that these travelers expected that their airline would go out of business!

The Cypriot airline Cobalt Air has cancelled all its flights effective October 17, 2018 and indefinitely suspended operations, advising customers not to go to the airport.  Cobalt, which had taken passengers to and from Cyprus since 2016, flew to 23 destinations and operated flights at Heathrow, Stansted, Gatwick and Manchester.

“Top tips: get travel insurance, book flights with a credit card and find a partner who can make you laugh despite waking up to the news you’ve both lost hundreds of pounds” said reporter Aamna Mohdin who waas among those affected by the cancellations.  Read the full story at The Guardian.

Photograph credits: Matthieu Clavel/AFP/Getty Images

Wild Fires are Impacting Travel Plans

Many areas of the western US are currently being ravaged by record-setting wildfires for the second year in a row. According to the US Forest Service, there are currently 68 ‘large incident’ fires burning in the US as of this date, most all of them in the Western United States.

These fires can cause havoc for vacationers whose travel plans are disrupted either due to the inability to get to their destination or in some cases, due to the travelers primary homes being impacted by fire.

For those with travel insurance, most can rest easy as their financial risk is protected against natural disasters.  Play Travel coverage underwritten by Nationwide Insurance Company will provide reimbursement for non-refundable travel expenses in the event that the vacation destination or the traveler’s primary home is inhabitable due to fire.  It also provides coverage for instances of evacuation due to fire threat or roads closed that prevent someone from getting to their destination.  For others, they may be one of the thousands who have been called on to battle the blaze and their vacation plans, regardless of the destination, have been put on hold due to the job requirement. They too have coverage.  Some exception and restrictions may apply, so please refer to coverage documents for specific terms.

Travel insurance is designed to protect against the unexpected.  It’s a small price to protect yourself against financial risk from unexpected events.  The key is to make it part of your travel plans at the time of booking.  Once a fire has started and threatens your plans it’s too late.  Similar to a named storm, insurance coverage may not cover you if purchased after a fire is declared or you are within 30 days of the start of your travel.  Plan ahead and be protected.

Top 10 Reasons Vacation Rental Owners Prefer Damage Protection vs. Damage Deposits

For most vacation homeowners and managers, the days of collecting damage deposits for a rental stay are gone.  Here’s a quick list of 10 reasons why so many lodging providers prefer damage protection:

1. Simplified Process: collecting and returning damage deposits are a hassle! You must collect the funds, deposit them, inspect for damage and then return at the end of rental assuming no guest damage. It's an involved process.
2. No Need for a Separate Escrow Account: If you are collecting damage deposits, you really need to have a separate escrow account to which you can deposit the funds.  This money belongs to the guest and not you and therefore should not be commingled with your operating funds.  Escrow accounts are really just temporary holding accounts you set up with the bank.
3. Damage Protection Benefits Both the Lodging Provider and Guest: Letting a guest know that you are charging them for damage rarely sits well with the guest.  Damage protection is meant to cover both the guest and the lodging provider whereby in the event of accidental damage, both parties are happy that the insurance is in place.
4. Guests Prefer Damage Protection: Guest surveys have shown that guests prefer to pay a reasonable fee for damage protection rather than tying up their money for long periods of time as a deposit against accidental damage. The number is big; 75% according to HomeAway.
5. Returning Guests:  Happy guests are likely to return for another stay.  End the stay on the topic of paying for damage, they are likely to find another accommodation next time.
6. You Determine the Guest Fee: Most lodging providers elect to pass the cost of the damage protection policy along to the guest as a ‘accidental damage protection’ fee with each reservation. You determine if that is at the retail cost or some other amount.
7. Eliminates the Bad Guest Review:  Take money out of the pocket of a guest and you open yourself up for a bad review.  It’s the guest’s way of ‘getting even’.
8. Holding a Credit Card is not ideal: Credit card chargebacks are common when lodging providers attempt to use them to pay for damage.  The credit card company will typically side with their customer when a dispute arises.  If you hold a credit card there is a good chance you will be left holding the cost for repairs.
9. Hassle Free Claims Process:  In the event of damage, you complete an online form, upload a photo of the damage and copy of the receipt for repairs or replacement.  Claims are paid in 30 days or less.
10. Damage Protection is Available Online:  The process is quick and easy when purchased from Protection Brands, a RentalGuardian.com company.  Just visit www.getdamageprotection.com and register.  Once registered its easy to purchase a policy.  The website is designed to allow you to save your property and credit card information, if desired for even faster visits for future purchases.

If you are among those who are still managing damage deposits, you may want to consider the benefits of implementing a damage protection plan.

AAA reports Travel Insurance sales up 20%

AAA says its travel insurance sales have increased more than 20% this year, following a 13% rise in 2017.

"Travelers are increasingly not taking chances, and they're choosing to invest in the value and peace of mind that travel insurance can provide, for international as well as domestic and cruise vacations," said Bill Sutherland, senior vice president of AAA Travel and Publishing.

A recent AAA survey revealed that 38% of travelers are likely to purchase insurance for future international trips. The most valuable benefit to consumers is trip-cancellation protection.

Seventy percent said the cost of their trip is the leading factor for deciding whether to purchase insurance. Other considerations are personal or family health concerns (69%), how far into the future the trip is booked (61%) and recommendations from friends or family to purchase insurance (57%).For those travelers, trip cancellation protection is the most valuable benefit with 9 in 10 (88 percent) of those likely to purchase insurance saying that getting their money back, if they cancel a trip, is their top priority.

“There are just too many unknowns, like family emergencies and natural disasters, which can throw an unexpected wrench into a planned vacation. Travelers are increasingly not taking chances and they’re choosing to invest in the value and peace of mind that travel insurance can provide, for international as well as domestic and cruise vacations.” said Robert Sinclair, Manager of Media Relations for AAA Northeast.

For its survey, AAA conducted a telephone survey of landlines and cell phones in June. In total, 1,003 adults in the continental United States were surveyed.