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What do you think about this?
Today, when I was responding to an inquiry with a quote, I noticed that an increase has been implemented. I am disappointed that the least expensive option is now $49, which seems like a lot to add on if a guest is staying for only 2 or 3 days. I am even more disappointed that we received absolutely no warning about a pending increase! We purchase PDP as "insurance" and have never filed a claim, even a small one. Maybe we should reconsider and file for the small stuff since there seems to be no discount for no claims, nor no penalty for frequent claims. Maybe this is why the increase was deemed necessary by the company that provides this? HomeAway, I hope you are looking for other providers for this service or less expensive easy escrow type options so that we can continue to rent our properties at competitive rates AND be protected with minimal hassle.
Creekside Vacation Home
Nope. I simply responded to an inquiry this morning with a quote. It's possible they are implementing the increase in certain market areas. Here is what HA says when you hover over the rate options drop down box:
Since we first introduced Property Damage Protection in 2010, it has become a very popular product and is clearly addressing needs for both homeowners and traveler. At the same time, both HomeAway Inc., and our partner, CSA Travel Protection, are still learning about the market dynamics surrounding this innovative, new product.
CSA Travel Protection and HomeAway want to continue to offer Property Damage Protection, but in order to do so, we must implement a modest price increase to offset unforeseen program costs.
We’ve maintained a low price point of $49 for the base product which offers $1,500 in protection, while moderately increasing the $3,000 coverage product to $69, and the $5,000 coverage product to $89.
We appreciate your understanding and patience as we continue to learn about this new product.
I just set out a quote and the smallest amount for $1,500 of coverage was $49. This really isn't worth it anymore when your doing a weekly rental of only $400. They need to come up with a method that is a percent of the rental fee it doesn't make sense that I charge the guy staying a week the same and the person staying a month.
You are right in that I bought coverage today for $49 and it only covered $1500. I had been asking for $3000 protetion at that rate. It will now be $69 and $89 for the $5000.
They said that they were paying out more than they had been taking in. I understand that they are running a business but I will now have more problems collecting for insurance. I am caught because I can't ask for a security deposit for that much money.
I am going up on the rental of this property for next year and think I will include the insurance in the new rate.
I had also sent a quote to a renter and when I went to fill out the "book it" form the price,as was stated before my reply, had A 50% INCREASE to $89.00 for $5000!!
I also called CSA and told them about it and they said they would honor the quote of $59.00 that I had already sent.
I told them they would lose a lot of customers including myself!
I'm not happy about this at all!
I had an increase in bookings because I offered a small fee for insurance instead of holding a deposit. I am trying to decide if I want to continue to offer the insurance. This has not been a good week for my listing. First my RM replies were being sent to SPAM for 3 of my guests and now an increase for the insurance. Not to mention we were not notified of the change! I have it quoted on my listing. Guess I better decide soon!
I have two contracts pending with a $39 quote as well. I don't think this was handled properly by the company and I will also stop using the service.
When I first heard about this service I felt it could easily be abused, and I suspect that's what's happened.
Has anyone else noticed, in addition to the premium hikes, the inability to choose a different level of coverage than your previous choices because it is not your "default" plan for your property listing? Today when I tried to select a lower premium, it refused to let me buy anything except the maximum amount. Just wondering if other folks encountered this recently, and if they found a way to change their "default" plan coverage.
I have a solution, Change companies. We offer Accidental Damage, Travel insurance and Rental Libility for month to month rentals. Were competitivly priced Were underwritten by Lloyds of London. Were fully automated to assist with a new policy or reporting claims.
888-885-5550 ext 1110
Harold, why don't you put your services on the vendor section. I believe it would be a benefit to post your rates like the current provider has to match apples to apples. If you say that there are too many variables and must be discussed by calling then I do not believe this would get as good of a response.
Good luck, alternatives never hurt
Harold, it seems from your rates that only Property Managers would get a better discount. Did I read something wrong? Shows why I would never be a good actuary....I would think that there would always be less damage with the renter to an owner versus a property manager.
Don't use CSA - what a rip off for the home owner. IF your tenant denies the damage, you get nothing! Just happened to me and they have covered every guest for two years. This was my first claim and I found them to be very unprofessional! Will be charging a deposit from now on!
Or ... imagine how much you would have built up in your own "insurance fund" if you'd been self-insuring for those two years! I offer my guests a choice between that and a Refundable Security Deposit. The overwhelming majority choose the Damage Waiver Fee and I've now built up a fund that is several times my deposit. A lot of folks here will say that it's important for guests to have "skin in the game". I've found the opposite to be true, though this may vary by location. Those who left my place in the worst shape put down a deposit, which I ended up not withholding anyway. This, so far, has worked great for me but your mileage may vary.
Make sure you are aware of all applicable laws and any potential implications this may have on your property insurance before implementing.