Robert and Karen are pleased that the new 65-inch LED Smart UHD Home Theater Display with High Dynamic Range has been a big hit with guests. Over the last four months, almost every guest has commented on it in reviews. But then, some guests got a bit out of hand, which sometimes happens, and bumped the television off the wall. Before anyone could react, it hit the floor and shattered. Robert and Karen are more than a bit distressed when they find out. How will they pay to replace it so soon? Have they considered some type of damage protection?
As privately owned vacation rental homes become more popular, the demand for hotel-quality comforts and amenities grow. Moreover, guests are no longer as careful as when staying in someone’s actual home; a rental home is more mainstream now like a hotel and people are more carefree. Accidents will happen, even with top quality guests. And, standard homeowner’s insurance does not cover damages incurred from short-term rental guests. Some additional form of damage protection is needed.
Damaged property is part of the facts of life for vacation property owners. Under normal conditions of use, especially during heavy rental seasons, items wear out or get accidentally broken. In the overwhelming majority of cases, these are small, relatively inexpensive items like remote controls, plates, or an occasional lamp. When such inconsequential items are damaged, it’s usually not a big deal to replace them between guest departures and arrivals.
However, when the damaged item is a large, costly piece of property as in our scenario above, the circumstances are different. Such an item likely involved a substantial investment, and a similar expenditure is now required only months later. Most vacation home owners do not plan to make repeat purchases so close together. How can you plan and pay for such accidents when they occur?
Damage Protection Options
For vacation home owners who book guests through a commercial service, most services provide some sort of protection via a property damage deposit that is required in addition to the rental cost. Such deposits are usually around $250 and will cover most accidental damage. Some services add a small amount to each day of rent for built-in damage protection instead of asking for a separate damage deposit from guests.
However, a few hundred dollars from these deposits is not enough to replace large ticket items costing thousands. Those vacation home owners who handle their own bookings must charge a substantial damage deposit in addition to rent, and as a result, see much fewer bookings.
A better and affordable option is a Damage Protection insurance policy from a local commercial insurer. For example, $3,000 of coverage could be obtained by adding a few dollars per night to the cost of rental. The additional cost need not be identified as a separate security deposit. Moreover, the addition of “$3,000 damage protection is included” and “no damage deposit required” on your rental agreements are additional selling points for your vacation property.
When seeking to acquire such a policy in addition to your homeowner’s coverage, be sure to ask for ‘Damage Protection Insurance for short-term rental property.’ Simply asking for ‘Renters Insurance’ can cause a misunderstanding and the wrong type of insurance coverage.
Book by Owner – Your On the Ground Team for Resort Property Management
The scenario described at the beginning of this article can happen to any vacation property owner. By taking steps to provide Damage Protection beyond your homeowner’s insurance policy, such unexpected accidents are no longer a major setback. For more information about damage protection options contact your local Book by Owner franchise owner or call 877.713.4947.
With Book by Owner as your local, on the ground property management team, you can enjoy peace of mind knowing your property is cared for and protected. We care for your home and guests 24/7/365, all for an affordable monthly fee. Contact Book by Owner for complete details and pricing for all the services available in your resort vacation area or for franchising opportunities.