15 Replies Latest reply: May 21, 2014 7:51 PM by ncboston RSS

    Has anyone used the Deposit Insurance yet?

    New Member

      I have had a few customer say my deposit it to high.  So I would like to know if anyone has used the Deposit Insurance and how is it working.

       

      Thanks,

      Linda

        • Has anyone used the Deposit Insurance yet?
          Active Contributor

          While you wait to hear from other Community members, you may want to check out this discussion on Accepting Payments.

           

          Related, here's an article on Security Deposit Policies as well as one on Handling Security Deposits and Payments.

           

          I hope this is helpful.

           

          Best Regards,

          Laura

           

          Laura Kelso

          HomeAway Community Manager

          • Re: Has anyone used the Deposit Insurance yet?
            Active Contributor

            Here is one more thread that might be helpful, related to Security Deposit vs. Damage Insurance.

            Best,

            Laura

            • Re: Has anyone used the Deposit Insurance yet?
              New Member

              Linda

               

              You are not the only one wondering. I just went with the rental insurance and was wondering the same thing. My first thought was, geesh if I have insurance, I guess I really don't need to worry about damage. I guess what it comes down to is........how difficult is it to get a claim through. I love the idea of having larger damage incidents covered while having a lower amount of collateral from the renter. Ultimately, we want financial compensation for damage that occurs during rentals, without financially breaking our customers. As the economy weakens, we will be limiting the renters that will be able to come up with the money to put on a damage deposit.

              • Re: Has anyone used the Deposit Insurance yet?
                spoonbill Contributor

                I have used both methods and frankly have not experienced problems with either.  Since I only accept credit cards for rental, and I bury the cost of the accidental rental damage insurance in my rate that gives them $1500 coverage.  However my contract makes it clear that they are the responsible liable party with the following language:

                 

                 

                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.

                 

                Where a special event is going to be taking place and I feel uncomfortable I require a high damage deposit too.  The policy retails for $45 but as an agent I get it for about 1/2 that amount.  Before, I used to require a $500 deposit and I never had any problems collecting it and it never seemed to stop anyone from renting the house.  The big hassle for me was having to refund the deposit.  Under the system I was using last year it was dificult.  Under the system I am using this year it would be easier so I may switch.  I think that if you screen properly and in my case I inform my guests that I have outside security cameras to monitor the property periphery and front door and garage so they know that if they violate the rules I may catch them on video, I find that the higher paying high end guests just are better behaved and I have not had an issue.

                • Has anyone used the Deposit Insurance yet?
                  sophie Senior Contributor

                  jordan,

                   

                  I see you just joined the community today and have left 6 posts  about buying "deposit guard' on 6 different forums.  Any chance you work  for them since your comments sound like a tv commercial?

                  • Re: Has anyone used the Deposit Insurance yet?
                    qqueen New Member

                    I havent heard of this before but am really interested in finding out how it works. I dont think many insurance companies offer this.

                      • Re: Has anyone used the Deposit Insurance yet?
                        spoonbill Contributor

                        First, Travel Gaurd is one of the companies offering these policies; however, once they signed up Homeaway/VRBO they dropped all small sellers such as myself.  To bring you current from my last post, I would not recommend these policies.  First, it relieves guests of too much responsibility and places all of the burden on you to collect.  Second, after your first claim it can get more difficult and more time consuming thatn it is worth.  Finally, they can refuse to cover your proeprty if you make too many claims.  In theory, the guests are supposed to submit the claims but in reality you have to because the guests frequently will not acknowledge the damage they have done.  They fear personal responsibility, which they have, but don't want to acknowledge.  Secondly, guests are not as careful because they think, "hey, I'm covered by insurance."  It is better to have guests worried that if they do damage they will have to pay for it.  Theya re much more careful then.  The $22 you will make on a policy sure don't offset your time and trouble unless you sell a lot of policies.

                         

                        With my booking site I have the ability to break credit card charges into two steps, an authorization which places a hold on that amount of money and then settling which actually results in a charge.  I authorize the $500 damage deposit just prior to check in and if all is well when the guest checks out I void the authorization.  Otherwise, I can change the amount to the actual damages and settle the transaction.

                          • Re: Has anyone used the Deposit Insurance yet?
                            ncboston New Member

                            Thanks for the reply.  I wonder how do you get credit card pre-authorization?  Do I have to have a physical credit card charge machine or any credit card company will let you request pre-authrozation?  I noticed that airbnb doing that, but don't know how can I apply for it?  Also, after preauthorization, do you have to make a cancellation within a short period, like 48hr, or a week?  What if there is a damage, how soon you have to file charges?  Thanks for sharing.