 |
Travel Insurance for Your Vacation Rental Guests
Insure your booking in case of traveler cancellations.
Travel insurance can offer you extra security because it protects your rental income in case a traveler cancels his or her reservation. It is important to keep travel insurance in mind whenever a renter alludes to a potential cancellation. You don't want to get stuck with a last-minute opening or a potential refund guilt trip, so travel insurance is a smart and professional way to handle possible cancellation issues with your guests.
The Benefits
The main upside of trip insurance is that it can alleviate the burden of cancellations, refund issues, and open dates at your vacation rental. Let's say you've got a renter scheduled to arrive at the end of the month and you've already collected the full rental payment. If your renter calls and has to cancel his/her reservation due to a family illness, there is little chance you would be able to rebook those dates this late in the game. If, however, he/she purchased a travel insurance policy that covers cancellations for medical emergencies, then any money* paid to you should be reimbursed by the insurance company. Since the insurance is taking care of it, you won't be torn between feeling guilty about your payment policy and wanting to use your business judgment.
Not everyone is a veteran renter. Vacation renting is a pretty new accommodation choice for many travelers, so you may get inquiries from travelers who are used to hotel cancellation policies that allow as little as 24-hour advance notice. By encouraging your renters to get a travel insurance plan, you are easing their minds about far-in-advance bookings.
How to Encourage Renters to Purchase Travel Insurance
To encourage renters to purchase travel insurance, include a clause in your rental agreement and suggest it lightly in inquiry correspondence. Any time a guest asks about your cancellation policy, you should always follow up with information on travel insurance. Ideally, your renters should purchase their insurance policy within 7 days of booking your home in order to get the best rates, and make sure they read the policy guidelines carefully. Travel insurance can range from as little as $35 up to a couple hundred dollars, so encouraging your guests to purchase a policy should not be a significant investment for them.
Sample rental agreement clause:
CANCELLATIONS: A sixty (60) day notice is required for cancellation. Cancellations that are made more than sixty (60) days prior to the arrival date are subject to a 5% cancellation fee or $50 whichever is greater. Cancellations or changes that result in a shortened stay, or that are made within 60 days of the arrival date, forfeit the full advance payment and damage/reservation deposit. Cancellation or early departure does not warrant any refund of rent or deposit. You may choose to purchase travel insurance separately.
STORM POLICY/ROAD CONDITIONS (mountain property): No refunds will be given for storms. Mountain roads can be curvy and steep. Gravel drives are well maintained, however we do not refund due to road conditions; we highly recommend you purchase travel insurance.
HURRICANE OR STORM POLICY (beach property): No refunds will be given, we highly recommend you purchase travel insurance.
TRAVEL INSURANCE: We highly recommend your purchase travel insurance. If you wish to purchase travel insurance, go to _______ for details and to purchase.
I hereby give permission to charge my credit card for the amounts above. I agree that all rental monies are non-refundable per cancellation policy above. I have read my rights to purchase travel insurance. By Signing Below, I agree to all terms and conditions of this agreement.
Sign____________________________________________________________
Quick facts about trip insurance that may interest renters:
- It can protect against unforeseen events that may cause renters to cancel their travel plans.
- It may reimburse nonrefundable pre-payments and/or deposits.
- It may cover emergency medical expenses if the renter purchases a more comprehensive plan.
- It may cover miscellaneous expenses caused by travel delays, such as transportation and lodging expenses or, if baggage is delayed, the purchase of essential items.
- It can also protect against lost, stolen or damaged baggage.
- It typically costs 5 to 7 percent of the trip cost.
Travel insurance companies:
Travel insurance can make your life easier by offering you peace of mind when your renters have to make cancellations. It can also provide your guests with some extra security about their trips. Encourage renters to purchase a policy either by inserting a clause into your rental agreement or by suggesting it in correspondence.
NOTE: Travel insurance is entirely separate from your regular homeowners or liability insurance coverage. Homeowners insurance would be purchased under your name, but travel insurance would be purchased by your guests under their name(s).
*Individual insurance policies and amounts for reimbursement will vary.
|
.gif)
How have you handled last-minute cancellations in the past?
|
.gif)
© HomeAway.com Inc 2008, U.090515.LC
|
|