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Damage Protection Overview

Damage Protection is a feature that covers your property against the accidental damage a guest might do while at your property.  It's an insurance policy that covers accidental damage for a particular guest and set of dates and paid for on a booking by booking basis.  It's directly integrated into OwnerRez and backed by Travel Guard/AIG.

Overview

We spent several years researching the various Damage Protection products out there before developing ours.  We wanted an insurance partner that was low cost but had a good track record of paying claims.  Some of the listing sites include damage protection, but they are known to be quite bad.  Not only are they wildly overpriced but they are known to reject most claims.  We developed something that spreads risk well for the insurance carrier but is also low cost for you - the property owner/PM.

If you go to Settings > Damage Protection, you'll see a page explaining in simple terms how it works and the costs.  Our $1500 coverage, which is the level of coverage we recommend for most properties, is $20 per booking.  When a booking occurs, the Damage Protection is automatically applied.  This is between you (the owner/PM) and Travel Guard/AIG (the insurer).  The guest doesn't know about it.  You can optionally choose to add a surcharge back to the guest to cover the cost, but the booking is covered regardless.

Once turned on, Damage Protection is not optional in the sense that it can be applied on a booking by booking basis.  All bookings must be covered - this is to satisfy the model of spreading the risk across bookings and properties of different types while also offering it at a low cost.

Damage Protection can be used for any property worldwide, however the owner/insured person (you) must either be a US resident or US company.

Costs and Coverages

Here's the price/coverage table.  Again this is applied automatically to every booking you create in the system:

Coverage Per Booking Fee
$500 of covered damage $10.00
$1,500 of covered damage $20.00
$3,000 of covered damage $35.00

 

Does this replace the security deposit?

We recommend having both Damage Protection in place and also using our security deposit feature to have a $300 or $500 hold on the guest's credit card.  Why?  Because it makes the guest behave.  When the guest knows that a security deposit is held on their card, they tend to take care of things better.  Damage Protection is a great feature, but you don't want the guest to think they can do what they want because, after all, "damage is covered".

Here are other reasons you should still have a security deposit in place:

  • Damage Protection only covers accidental damage.  If the guest commits intentional damage, such as vandalism, it won't be covered and you'd have to go after the guest for that money a different way.
  • The guest may break house rules in which case you need a security deposit to bill them for fines, fees or overages.  For instance, they might bring a pet but not tell you about it.  If found, you may have a fine or fee for the pet.  Damage Protection would not cover something like that.
  • The accidental damage might cost more than the coverage includes.  For instance, a lot of users opt for the $500 coverage because it's cheap (only $10 per booking) and covers a lot of common things - stained linens or towels, broken glasses, even windows.  But what if the guest breaks an expensive item like a TV or fridge?  The $500 coverage wouldn't cover that expense and you'd have to go after the guest for more money.  A security deposit can help with that.  Incidentally, this is why we recommend the $1500 coverage tier.  It tends to be the best coverage value for the cost.

What about canceled bookings?

If a booking is cancelled, the damage protection converge is refunded. Damage protection is paid on your monthly invoice. If you cancel a booking before the damage protection has been charged on the next monthly invoice, then it won't show up on the invoice at all. If the damage protection fee has already been invoiced, you'll see a credit for the canceled booking on the next monthly invoice.

Imported Bookings from VRBO or Airbnb?

There is a caveat to "every booking in the system" rule which is for imported bookings from listing sites.  Because Airbnb, for instance, applies its own damage protection, you may not want to doubly pay for coverage on those bookings.  To help with that, we have a "Apply Damage Protection" setting on calendar imports so that you can avoid paying for coverage twice.  This only applies to imported bookings.  For VRBO, we recommend leaving it on and telling VRBO to turn it off on their side (which they have an option for).  This is because VRBO's damage protection is very expensive and known to deny claims.  If the listing site has the option to opt-out of damage protection, we recommend doing that and going with the product we have set up instead.

The Claims Process

The claim process is fairly straight forward, but it's manual for now.  On any booking, you'll see the claim form on that Damage Protection tab.  It's a PDF you fill out and email or fax in.  We are already working on making that electronic so that you only have to fill in a form right in OwnerRez and upload your pics directly.  Here's what it looks like on a booking that has damage protection in place:

Travel Guard requires that the damage be found within 14 days of the guest departing.  You don't have to have fixed or replaced the item within 14 days, that's just when the claim has to be made by.  They then give you 60 days to send in pictures of what happened (the evidence) and the invoice/receipt of what you paid to have it fixed or replaced.

IMPORTANT: As mentioned above, the damage must be accidental.  Travel Guard will not cover damage that was intentional.  The coverage also does not cover non-damage items like (a) your time in assessing the damage or (b) the guest not following house rules (eg. bringing a pet when you don't allow pets).

Common Questions

  • Does the insured property have to be in the United States?

    No. Damage Protection can be used for any property worldwide.  However, the owner (ie. insured person - you) must either be a U.S. resident or U.S. company.

  • Can Damage Protection be used on long-term rentals?

    Yes, but the maximum length of stay is 180 days.  If your long-term booking is more than 180 days in length, Damage Protection coverage will not apply.  If you can split up longer stays into smaller bookings, coverage can be purchased for each of the smaller bookings.

  • When exactly does the coverage begin?

    The coverage takes effect on the date and time the guest checks in as a registered guest at the Rental Property, provided the appropriate plan cost has been paid before check in.

  • When exactly does the coverage terminate?

    The coverage ends on the earlier of: (1) the normal check-out time on the guest's scheduled check-out date from the Rental Property; or (2) the actual departure date of the guest from the Rental Property.  In other words, if they leave the property early, the coverage ends when they leave.

  • Do I have to pay for all of the pre-existing bookings that were in place prior to turning on Damage Protection?

    When you turn on the Damage Protection (ARDI) it starts working on bookings from that point forward. You can (optionally) choose to add it to pre-existing bookings, but you have to do that one by one.

  • When the property is blocked-off for personal use, or for the owners to stay, do we have to pay for the insurance for that stay?

    Damage Protection only applies to bookings, not blocked-off times. So just create a blocked-off time and it won't apply.

To get started, go to the Damage Protection page in the settings area and flip it on!