34 Replies Latest reply: Jul 22, 2013 8:19 AM by mike-dfv RSS

    property damage protection

    New Member


      I am just wondering how other owners have found using the property damage protection insurance instead of a damage deposit?

        • property damage protection
          Contributor

          I like having a deposit. Guests never seem to mind.

          • property damage protection
            spoonbill Contributor

            I have been providing Travel Gaurd's $1500 rental damage policy to guests in lieu of a damage deposit and I have not had to file a claim or had any problems.  My contract clearly states that they must report any damage to me and assist me in filing the claim and that failure to do so will result in my inability to file the claim against the insurance company and they are authorizing me to charge their credit card for the damage incurred.

             

            Here is the language from my contract:

             

            3) Renters will be completely responsible for any and all damage to the home or property caused by Renters, whether accidental or due to Renters negligence.   However, Renters understand that the rental includes an accidental damage rental policy providing up to $1,500 in accidental damage protection provided Renters notify the owner and assist the owner in making a claim.  Renters understand that Renters are responsible for damage beyond the coverage provided by the accidental damage insurance.  Renters are also responsible for damage that would have been covered by the accidental damage insurance if Guests fail to advise the Owner of the damage and provide the necessary information that would allow the Owner to file a claim against the policy.

            • property damage protection
              Active Contributor

              Hi there,

               

              These related discussions might be illuminating as well. There is one on Deposit Insurance, and one related to Security Deposit versus Damage Insurance.

               

              I hope this helps,

              Laura

               

              HomeAway Community Manager

                • property damage protection
                  New Member

                  Hi Laura,

                  Do you know if we are supposed to charge sales tax on the damage insurance we sell to guests? So far we have not been charging tax on damage or travel policies.

                  I have been VERY happy with the damage insurance as it allows us to recoup money for  damaged items without damaging the relationship with the guest. In the last two years, we have only had one claim that is over $500. Most of them are around the $50 to $200 level. Therefore we have decided to start making the $25 TravelGuard policy for $500 in insurance mandatory.Yes, Travel Guard has other policies other than the $45 one, both higher and lower.

                  The only downfall that we see with it is that when we had a security deposit, we told them they would be fined $250 out of their security deposit if they had a party (against our rules) and disturbed the neighbors. Now, with the damage insurance, we don't have that option/recourse anymore.

                  Nancy

                    • property damage protection
                      Active Contributor

                      Hi Nancy,

                       

                      Apologies for the delayed reply.

                       

                      The short answer to your question is no. The tax on insurance products is collected and remitted by the insurance providers, so there is no need for owners to collect tax against them.

                       

                      Any other questions - please don't hesitate to let me know.

                       

                      All the best,

                      Laura

                       

                      HomeAway Community Manager

                  • property damage protection
                    New Member

                    I was very intrigued with the idea of "Travel Guard insurance" as an alternative to security deposits. After researching it on-line I just read over 50 reviews which were 80% very poor! This was alarming. Does anyone know of another option with a bit more positive track record?

                      • property damage protection
                        Active Contributor

                        Hi there,

                        You might find the property damage protection insurance offered by HomeAway (care of CSA Travel Protection) of interest.

                        Any questions - just let us know!

                        Cheers,

                        Laura

                         

                        HomeAway Community Manager

                          • Re: property damage protection
                            New Member

                            Hi Laura,

                            I have not had ANY problems with Travel Guard in the last 2.5 years that we

                            have been using their services. They have paid every damage claim in a

                            timely manner and I put through quite a few (about 3 per month) and people

                            who have bought the travel insurance and had to cancel their trip were paid

                            as well.

                            I am now requiring every guest to purchase $500 damage insurance policy for

                            $25 and have been doing that for one month now with no complaints from the

                            guests.

                            We have 45 rentals and do $2.2 million a year in business.

                            Nancy Kramer

                            • Re: property damage protection
                              terirusso Contributor

                              Laura, I hope you can answer a question that I am getting conflicting answers to. Since we have discovered that CSA will not cover certain items that a security deposit will, like STOLEN bicycles, lost beach badges, and excessive garbage that the cleaning people charge extra to take to the recycling center. We also charge for non return of keys. Smoking in the house is also another example that CSA does not cover. But I also like the comfort of knowing that if my TV is broken I can make a claim. Am I allowed to charge a security deposit for the items listed that are not covered and also take out a CSA insurance policy for larger items?

                              • Re: property damage protection
                                New Member

                                Laura, I was wondering when someone files a claim, how is it processed?  Do they contact the guest? For example, I had a wonderful guest who wrote a great review and had a wonderful time, however, I had two broken dishes after their stay.  I would be embarrassed it CSA contacted them after that review.  Stacy

                            • Re: property damage protection
                              New Member

                              CSA CLAIMS SUBMISSION:  I submitted a claim and it was DENIED.  Why?  CSA said that because the insured (tenant) said that they DID NOT cause the damage.  We know they caused the damage:  $324.00. 

                               

                              So -- if your insured tenant is going to DENY that they caused the damage; why even bother!!  I will NOT use them again!

                               

                              Are there any similiar stories?

                                • Re: property damage protection
                                  swiss-house Contributor

                                  We submitted a claim to CSA this summer and they paid it without a fuss (although only on replace-able items, not on the labor required to repair a damaged wall that I fixed myself). 

                                   

                                  I'm not sure if they contacted the renters or not - I kind of believe the answer is not since the renter called to ask if they could rent again later in the summer (which we did not accept of course!).  Given the arrogance of the renter, I believe that if CSA had contacted them about the hot tub damage, they would have denied it.  But either way, CSA paid the portions they said were covered.

                                • Re: property damage protection
                                  New Member

                                  Has anyone mentioned how they incorporate the wording guestchecker.com requires into the VRBO website:

                                  "At any time before, during, or after your stay, your information may be shared with www.guestchecker.com"

                                   

                                  I have read that VRBO is not permitting to have the live link. So are you then putting it in your rental agreement? and if so can you share the wording?

                                   

                                  Before reading this blog, I started replying to potential renters including the insurance fee leaving out the deposit because it sounded so good. Now, after reading all this, I want to go back to the refundable deposit but have to handle those few renters that were given a quote already with the insurance. 

                                  • Re: property damage protection
                                    New Member

                                    I use both! In case they check out late or bring the pet they weren't suppose to bring. I can back charge them without difficulty. I charge $200 cash and also pdp.

                                    • Re: property damage protection
                                      New Member

                                      How do I buy damage protection from Travel Guard? Thanks

                                        • Re: property damage protection
                                          spoonbill Contributor

                                          VRBO is now offering it to owners.  I used to be an owner/agent but when VRBO decided to get in the business they dropped all of us small agents and try to force us to purchase through VRBO.  Candidnly, I used this instead of a damage depsoit for over a year and while they paid on the two claims I had to make, it became clear that another claim and they would no longer make it available.  I now advise guests that I authorize the $500 damage deposit just prior to their check-in and if all is well when they leave I cancel the authorization and do not settle.  Their is no charge to the customer and no fee paid by me.  It encourages them to leave the place as they found it and or report problems they find on check-in.  This seems to work very well.

                                        • Re: property damage protection
                                          New Member

                                          Also, as a heads up many of the credit card companies have language in their policies that prevent charges on a security deposit for damages. They say a security deposit is only to be used to guarantee the first night's payment (they treat vacation home companies like a hotel). I had a guest who disputed the charge with Visa and won with this terminiology. Visa advised us that we should charge the guest for the exact amount of the damage and not via a secuirty deposit because they won't accept it. If the guest doesn't argue it then you're fine but be careful if they do. I have done this two times since losing and won both times even after the guest disputed because we charged the exact amount and had plenty of evidence. You run the risk of the charge declining though.

                                            • Re: property damage protection
                                              spoonbill Contributor

                                              I authorize the full $500 as a damage deposit not as a security deposit.  I don't settle the transaction and if all is ok on check out I void the transaction.  If not, I change the authorized amount to the actual damages to be charged and authoriz and settle.  My contract specifies that they are agreeing to authorize me to do just that so between the contract and the fact that it is for actual damages it becomes much harder to dispute.

                                            • Re: property damage protection
                                              tmmmandm New Member

                                              I have used property damage protection at the recommendation of HomeAway and was horribly dissatisfied.  They paid my claim for a totally destroyed recliner, but only paid me on the depreciated value, NOT the replacement value.  I would have been better off with a security deposit.  I stopped using them right quick.  HomeAway did NOT stand by their recommendation.  Unhappy

                                                • Re: property damage protection
                                                  spoonbill Contributor

                                                  When I was selling this insurance and using it on my own property, they apid actual replacement cost up to the limit of the policy.  However, it was my job as the selling agent to fight for my customers.  We all know that Homeaway and VRBO don't see protecting their customers as their primary responsibility.  Instead, they seem to prefer to stand against us.  Such arrogance and poor treatment to their customers will eventually cost them the very customers they treat with disdain as other services grow in recognition with the vacationing public and owners drop their advertisements.

                                                  • Re: property damage protection
                                                    hkquinn Active Contributor

                                                    I would encourage everyone to take a few minutes and actually look at the coverage. http://www.propertydamageprotection.com/pdf/100HADoc.pdf On page 5 the policy

                                                    "ACTUAL CASH VALUE means purchase price less

                                                    depreciation."

                                                     

                                                    I know accidents happen, and that's OK. But here is why I will not use the PDP

                                                     

                                                    Pg. 9 :

                                                    "you or your Traveling Companion being under the

                                                    influence of drugs or intoxicants, unless prescribed

                                                    by a Physician"

                                                     

                                                    The last major damage I had was not covered because my house guests were intoxicated. Broken closet doors, holes in walls, things pulled off the walls. There must have been brawl or party going on. Nothing was covered. Since I went back to a damage deposit, I have only had  true accidents (pot burned beyond recognition.

                                                    • Re: property damage protection
                                                      ncboston New Member

                                                      I recently had an experience to deal with Flipkey property dmage protection claim.  the representative is very plesent and they don't hvae 48hr (file claim 48 hr of incident) rule.  As many time, when I received the report from my cleaning team, its already couple days later.  In addition,. the protection plan from Flipkey is 1/2 of the amount that Hoeaway.com charges.  I will not recommend to purchase the PDP from Homewaay.com site. 

                                                    • Re: property damage protection
                                                      beachbumz Active Contributor

                                                      Hate to say it but "The People's Court" is my second favorite TV show. As Judge Milian says, the purpose of the (judicial) system is to make you whole, not serve as a bonanza. She always gives the depreciated value of an item, as opposed to the replacement value. By watching this, I wouldn't have ever expected anything but the replacement value. In this case (only this case), I think they're being fair.

                                                      • Re: property damage protection
                                                        New Member

                                                        My guests never had a problem paying the $500 refundable security deposit.  On occasion, some would inquire about insurance.  When we began offering insurance in lieu of a deposit, I noticed that guests became far less careful with things, a bit messier, and noticed small things missing.  This never happened while we required a deposit.  We had a couple incidents where a guest broke a nice wall clock, someone took the travel crib, broke a sculpture.  When my husband went to submit the claim, they wanted a copy of an official police report. We never called the police because the damage/loss seemed off scope to bother the police.  Our claim could not be processed. 

                                                         

                                                        I just went back to asking for $500 security deposit.  People just seem to be more cautious.  Those for which a $500 deposit is too excessive were not the right fit for the property in the first place.  The deposit helps weed out tenants.  If I were to ever offer the insurancve again, I'd probably include additional charge for insurance in the taxes and fees and require a $300 security deposit.  

                                                        • Re: property damage protection
                                                          tnhomeowner New Member

                                                          I had  a family renting our home and one of their kids was sleeping on the leather couch and wet the bed. We tried everything to get the stain out but it didn't work so we submitted a claim to have the couch repaired. Three weeks went by with no response (other than the first reply saying they had received my claim and would followup) I called and they said they didn't have my claim. So I resent the claim and got another autoreply. That was over a week ago. Still no response.