SECURITY DEPOSIT V. DAMAGE INSURANCE
Written by Destiny Nadeau
For the longest time there has been a discrepancy between which is better: a security deposit or damage insurance? While both are there to cover you in the case of any damage done to the property while you’re out on vacation, it is true that one outweighs the other.
A security deposit – which is more typical – is collected by management or by the homeowner in the form of a check, credit card, or cash. A security deposit ranges from around $500 or more. It is to be paid up front upon arrival and as a separate entity from the nightly room rate and the fees.
Not only are you paying an absurd amount of money in the event of damage, but it is also held for an extended period of time after your departure, and only returned to you once housekeeping has had adequate time to conduct a proper inspection. Once the inspection has concluded, there is no guarantee that the money will be returned in full or even at all, which often leads to heated disagreements on whether or not the deduction was justified.
Which brings me to my next point: damage insurance. Not only is this route significantly cheaper, but much easier to manage, and much less messier. For the Nomadness Rental Company our current insurance policy requires the renter to pay a non-refundable $55.00 flat fee. This covers up to $10,000 in accidental damage which the renter will not be held liable for. This one-time fee is collected at time of booking and no ID or credit card is required to put on hold once you arrive at the property.
When you book with a company that offers damage insurance, you get to rest easy with the knowledge that once you depart, no other money will be collected from you to repair anything that has happened to the rental you reserved. Unlike security deposits which require you to wait for months on end for your reimbursement, damage insurance is a one-time fee that leaves you with the peace of mind that in the event of an accidental mishap, you will not be held reliable, no ifs, ands, or buts.