Vrbo, or Vacation Rental By Owner, is a popular platform for booking vacation rentals. With over 2 million properties listed worldwide, it offers travelers a wide range of options for their next getaway. However, one concern from hosts that often comes up when using the platform is the lack of Vrbo damage protection. This post explains what Vrbo offers in terms of damage protection, the importance of a refundable deposit, and how hosts can protect themselves.

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What is Vrbo Damage Protection?

Vrbo does not offer its own damage protection program. This means that if any damage occurs during a guest’s stay, the host will have to rely on their own insurance or seek compensation directly from the guest.

Hosts can file a damage deposit claim with the guest, which can result in a lengthy process and potential disputes. This lack of centralized protection is a major concern for hosts who want to protect their rental property from potential damage. However, it must be noted that Vrbo does offer up to $100,000 in liability protection for hosts.

How Can Hosts Protect Themselves?

Without Vrbo’s damage protection program, hosts need to take matters into their own hands to ensure that their property is protected. Here are some steps you can take:

• Get Insurance: The most important step any host should take is to get proper insurance coverage for their vacation rental property. This will provide financial protection in case of damages or accidents on the Vrbo property.
• Charge a Security Deposit or Vrbo Damage Deposit: Hosts can also charge a security deposit when guests book their property through Vrbo. Requiring a refundable damage deposit upfront helps cover any damages or extra cleaning fees that may occur during the guest’s stay. Make sure this is paid upfront by their bank or payment provider.
• Implement House Rules: Clearly outline your expectations and rules for guests in your rental agreement. This can include restrictions on parties, smoking, and pets, as well as penalties for breaking these rules.
• Communication is Key: Keep an open line of communication with your guests before and during their stay. Make sure they have all the information they need and are aware of any potential risks or rules. A great place to include information on makeshift Vrbo damage deposits is on the property details page.

Third-Party Insurance Providers to Consider

With the obvious gaps in Vrbo’s protection plans hosts should purchase property damage protection from a third-party provider. Of course, it’s important to carefully evaluate insurance providers that cater specifically to short-term rentals. Here’s a brief overview of some reputable companies that offer tailored insurance plans:

• Proper Insurance: This provider offers comprehensive coverage designed for short-term rental hosts, including liability, property damage, and loss of income protection, specifically for vacation rentals.
• Safely: Offering a unique combination of coverage, Safely protects against damage, theft, and liability while also including host guarantee options to safeguard your rental income.
• Lemonade: Known for its user-friendly interface, Lemonade provides affordable landlord insurance that can be tailored for short-term rentals, focusing on liability and property damage coverage.
• Waivo: Waivo specializes in short-term rental insurance, offering customizable plans that cover damages, losses, and legal fees.

Final Thoughts

It’s essential to prioritize safety and protection for your property and your guests. In addition to taking necessary precautions and requiring an upfront refundable damage deposit, investing in short-term rental insurance can provide peace of mind and financial security.

Each provider offers different coverage options, so be sure to research and select the best plan that fits your specific needs as a vacation rental host. Remember to communicate clearly with your guests and set proper guidelines to prevent potential risks or damages. By following these tips, you can ensure a successful and secure experience for all parties involved in your vacation rental journey.

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!