While we admit your vacation rental will be fine 9 times out of 10, damage is bound to happen at some point. When it comes to your rental, we feel it is better to be safe than sorry. The damage protection insurance will take care of anything from a lamp being knocked over to the $5,000 catastrophe.
You may think security deposits are an effective way to put your mind at ease but you also have to think about keeping your guests happy too. Travelers spend a lot of time and effort in searching for the perfect vacation rental. With the average booking costing $1200, many travelers will shy away from properties with high security deposits. Even though travelers are most likely to have their deposit returned upon checkout, having an additional start up charge of $300-$500 is enough to make potential guests hesitant to book.
Besides losing prospects, security deposits can be a hassle for both you and your guests. Last Memorial Day weekend my friend rented the perfect beach house on the Cape for ten of our friends. We all had a great time but over the weekend one of our clumsier friends dropped a small stack of dishes. We also managed to crack a plastic deck chair that we used for home plate in our Wiffle ball game (which turned out to not be a good idea). At the end of our stay we wrote an apologetic note saying we understand that some money may have to be taken from our deposit.
Two weeks later my friend, who put the deposit down, called me saying that the owner charged us the whole $250 deposit for our damages. She argued that the dishes and plastic chair couldn’t possibly come to $250 but the owner wouldn’t budge. We swallowed our pride and just decided to accept the deposit loss. Even though the house was an ideal fit for us, we are booking a different vacation rental for next year’s Memorial Day weekend. We’re making our trip into an annual getaway and this particular owner lost out on us as returning guests for years to come.
Had we had the option during booking to elect for insurance, we wouldn’t have thought twice about it. Obviously it is easier to say we’d take the insurance after our deposit dispute, but when you break down the numbers it makes sense. If the $35 insurance plan was added to our booking total, it only would have been an additional $3.50 per person (instead of the $25 we each paid) for up to $1,000 in damages. I think we would all agree that paying a collective $35 is worth the possibility of losing $250.
More importantly the insurance plan will keep YOU happy! The arguments of damage cost with guests are completely avoided as the insurance will take care of it. Above all, the insurance financially protects you much more than a security deposit. With the guests paying less up front and you getting more coverage, the insurance is a must!
Insurance Plan Options
$1,000 in coverage at a cost of $34.99
$3,000 in coverage at a cost of $39.99
$5,000 in coverage at a cost of $49.99