Hi,

I'm a fairly new property owner (7 months).  We haven't had problems charging a $500 security deposit and accepting the payment via credit card through Reservation Manager.  However, last week on a HA webinar "Tricks of the Trade," the speaker said that the major credit cards "technically" do not cover damage.  That if a charge was made to a card to pay for damages after a guest leaves and the guest disputes the charge, it would be charged back (money taken back from owner) and the owner may be fined $500 if they fight the dispute.

We have not had an instance yet of damage.  If it occured, we would be refunding less than that total $500 deposit paid by the guest through HomeAway.  Would this be a possible issue for the credit card company if disputed?  Or does HomeAway have a special agreement?

If this is an issue then we would consider using the CSA damage protection insurance option, but need to know the likelihood of having claims denied.  I have called them and asked for their rules, but first hand experiences would be more helpful.  i.e. if a guest left the tub running and cause water damage to the floors is that covered?