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I dont mean to be combative nor contrary…just a little more accurate.
It is not legal to require the purchase of insurance. You CAN require they purchase Damage Protection ( in lieu of placing a damage deposit ). This is “protection” and not “insurance”. Semantics. Yes it is payable to the property owner. The coverage is for the guest…it is purchased by the guest, but the money is paid to property owner. If the coverage contacts the guest, and the guest denies the damage ( usually due to stupidity or not understanding the terms )…then the claim is denied and the property owner will not be paid. I have been paid on that protection in the past. I am very familiar with the product and the procedure. I now use OwnerRez so I get a different damage protection that I purchase…so now I own the protection instead of the guest owning it. It never touches the guest.
Now on another note: = What does this mean? = “As an aside, I recently heard from an Allstate agent in MA that its policy which covers Airbnb Hosts covers only Airbnb hosts, not any damages or liability that accrues from a VRBO rental.” An AirBnb host means just that…that it is a booking processed through the giant platform of AirBnb. An “Airbnb Host” ceases to be an “AirBnb Host” when a booking is made from VRBO…then they are a "VRBO Host" …or more accurately…they are a short term rental property owner who listed and rented to someone through the VRBO platform. Again, words matter. If the policy says “Airbnb” then the policy refers only to AirBnb and not to VRBO.
They are competing companies that own no property at all.
I appreciate the accuracy you’re injecting here! Yours is always helpful and constructive ‘criticism.’ Thank you.
On your second point, which I interpret as seeking clarification, I am also in agreement. The Allstate agent is saying just that, that its coverage is supplemental to Airbnb coverage. It would not cover any other kind of short-term rental, such as a VRBO rental. Yes, I’m told that the policy mentions Airbnb specifically.
BTW, I learned about OwnerRez from you and am planning to get it. You make yet another good point in pointing out that with that channel manager you own the protection instead of the guest.
UPDATE: Lynn, below, makes a correction based on her actual experience with Allstate. It’s interesting and a little disturbing that agents are not always accurate in describing their coverage. And, of course, the policy language controls.
What a weird thing to accuse a poster of who has simply explained how things work, she hasn’t cheerleaded VRBO.
I’ve seen this attitude before, when someone is corrected about what they posted. It is possible that other hosts are more knowledgeable about how things work on any given platform without “working for them” you know.
Just to clarify, Allstate is will to write a STR policy as a supplement to a house ride as long as your STR is part of the home you reside in. Mine is on the second floor of my home. VRBO will also be covered. Basically I have enough coverage no matter what the guest does if my home is destroyed or damaged. The only think I really have limited coverage on is their personal property. (Up to $10,000). After spending over an hour this morning going over my coverage with my agent, I feel like I have the right policy for my needs.
Thank you. Yes, my agent explicitly stated the opposite on VRBO rentals even though she was told that the rental is in my home. But you have the actual coverage, so I think your point wins the day!
No - and I might even be termed a “VRBO hater”…but I detest AirBnb even more than VRBO! I am one of the types of owners who listed when VRBO was just a rental intermediary…$259 for a listing each year and no other costs… if you were listed long term you showed on top of views based on longevity…no service fee, no controlling the owner, all guest information disclosed. The guests were very different back then too. The incremental changes have been hard to swallow over the years. I feel like a boiled frog.
I resent AirBnb because of the amount of control they exert, and also how they changed the industry, and made renting a home, or part of a home accessible to the masses…which brought in zoning and oversight from towns also, and even more fees. I was the only house rental in my town back then. I now pay an additional $30,000 in service fees and permit fees, over what I paid out in 2012. And I already paid all taxes then too to local, county, state and country. That is a huge amount taken right off the top of our profits. I believe that service fees are money paid by guests that would be in the owner’s pocket and not the listing site pocket. The consumer was willing to pay it. My prices are now lower than they were in 2012 due to service fees and competition. I am very glad I started back then and had a chance to ride the wave. Golden days. I also got housing much less costly than it is today, and now have no mortgages. So no matter what, unless I am zoned out of business, I will earn some money…the only question is…how much? I feel terribly for the newbies who jumped into this business during the past 2 years, with soaring covid bookings and high housing prices. At least they should have low mortgage rates to carry through. They will be trying to cover a mortgage and rely upon housing prices rising.
I also was one of only 6+ owners in the country who participated on the first owner’s advisory board when VRBO was bought out by Expedia. We few owners were there supposedly to give input and guide the changes. We had lots of meetings. I interacted with the presidential level of VRBO and was privy to a lot of inner workings…as was another person who posts on here too. Those days are long gone. I am now just a regular owner, like everyone else. ADDED: My first house is where the rates have dropped. I live in the attached apartment. Now, travelers want their own free standing homes, and are not willing to pay equivalent for a house when an owner is in a separate place on site. I used to charge the same as any house…but now it is a detriment to live here and impacts the rates. I have one other house in the neighborhood 3 blocks away. I am active and involved in my neighborhood and my properties and presence are an asset to my neighborhood. I donate yearly to the civic fund and attend meetings. There is no HOA.
I’m always scared that a guest who buys insurance will think they don’t have to take care of the place because it’s insured. (But insurance, have a party!)
I would rather take a deposit up front so the guest knows that their actions determine if they get their money back.
