Of course, you didn’t! This is a rhetorical question because none of us like paying any more than we have to when booking a vacation rental but there has to be some way of compensating the owner if there were an accident that occurred during the renters stay. We can all agree to that but is a security deposit really the best solution? A resounding, no because there is a better, easier and less expensive solution it’s Damage Insurance.
What exactly is Damage insurance? It is an insurance policy offered by some property management companies such as NomadnessRentals and many of OTA’s. This insurance policy is purchased by the renter at the time of booking a vacation rental for a nominal fee. NomadnessRentals charges $59 for $10,000 coverage there are many other Damage insurance policies but most offer coverage for a fee of $59 for $1,500 in coverage.
During the renters stay should an accident happen such spilling a bottle of red wine on a white rug, dog destroys the rug, a chair breaks or the kids spill blue cool-aid on the couch how are these accidents handled?
Security Deposit: The homeowner collects an additional amount upfront when the renter books for the security deposit ( usually $500 – $1000). If your reservation were $2000 the homeowner would collect $3000 and hang on to all those funds until the renter departs and the property is assessed and the damage corrected and then the balance would be returned assuming there was a balance left. Now if the security deposit did not cover all the damages the renter would be required to pay the difference. Hopefully, there would not be any accidents but accidents do happen when you least expect them. In addition to paying an upfront security deposit the renter has to wait for a refund this could be weeks or months out. What also makes things a little more prickly is that repairs that need to be made can cost more than the renter anticipates and then there is a feeling that the landlord is taking advantage of the situation considering they have the renters money as hostage. Not a very pleasant way to end a vacation.
Damage Insurance: The renter purchases the damage insurance ( nonrefundable) policy at the time of booking and that’s it. If an accident (not an intentional act of destruction) were to occur such as a lamp getting knocked over and breaking. No worries the renter can just report the damage and walkway. Yes, it’s that easy. In the case of NomadnessRentals management company would handle the claim from beginning to end and neither the homeowner or renter would be inconvenienced. The renter would have wonderful memories of their vacation and no bad aftertaste of leftover problems as a result of an accident and the homeowner is left whole as the accidents expenses would be handled by the insurance company.
When comparing Seciruty Deposit vs Damage Insurance it really is a no-brainer! A security deposit costs the renter more upfront, there is a delay in getting the security deposit refunded and if there are damages they may or may not all be covered by the security deposit which mean it could cost the renter even more money. A Damage insurance policy requires a nominal purchase upfront and no other worries for the renter or the homeowner. Enjoy your NomadnessRentals vacation worry-free when you purchase Damage Insurance and focus on having a carefree vacation, not one that is on edge about a possible accident.
If you would like to know more about NomadnessRental Damage Insurance call 888-472-5777 or email email@example.com