Our Damage Protection carrier, TravelGuard/AIG, just announced that they are going to be ending support for the Damage Protection (ARDI) program that we sell through OwnerRez. This took us very much by surprise.
However, we are actively discussing a drop-in replacement product with several other carriers and will have more information in the upcoming days and weeks. We are working hard to make sure that there is a seamless transition to the new carrier and program.
FAQs about the transition
When does the current Damage Protection program with Travel Guard/AIG end?
You can continue buying Damage Protection policies until November 25 through Travel Guard/AIG, exactly the way you've been doing. To put that differently, as new bookings come in, the current Damage Protection program will continue covering them with new policies up to November 25. After the 25th, new bookings will no longer be covered by Travel Guard/AIG.
However, we anticipate having the new carrier and product in place before the 25th, so the transition should be seamless. We will of course update everyone about the process as we learn more.
Will current policies be honored?
Yes. Travel Guard/AIG will continue to honor the policies that have been sold until those bookings are over, no matter how far out into the future those bookings occur. So if you've purchased Damage Protection on bookings in 2020, they will still be honored.
Who will the new carrier be?
We don't know yet. We have talked to two already and are meeting with a third this week.
Will the coverage levels be the same?
They will be similar. Most similar products offer $500, $1500 and $3000 coverage levels. Some also offer $5000.
Will the rates stay the same?
Most likely not. From what we've seen so far, there will be changes in what Damage Protection will cost you moving forward. We are doing out best to keep the product the same, but we are limited by what the carrier charges.
Will the program requirements be the same?
They will be as close as possible to what we offer now. We are entertaining adding an Optional Guest Add-On product in the future, but only in addition to the All Bookings Covered model that we have now. We like the current spread-risk model because it's easier to underwrite by the carrier, and we believe it is a better business model for vacation rental owners and PMs.
How will I know?
We will issue another blog post when we have the new carrier ready to go, and will provide full information as to how to go about the transition. Depending on the details, we will make the transition happen automatically with no action by you if possible. If not, you'll be given clear instructions as to what to do. Of course, you always have the ability to turn off ARDI, and that will not change.