Travel Insurance for Renters??? Rip Off??

[SMcQueen]

Anybody---
Is it common practice in the South Walton area for a Rental Agent or owner to charge a 6.5% fee, payable to another party, that supposedly allows the Renter to recover his rental deposit in the case that Hurricane XYZ blows the rental property away before his arrival???

I have just paid a $1500 deposit agreeing that I will not try to check in before 4:00PM, nor out after 10:00AM (wasting 1 whole day), nor will I smoke, steal the ash trays, destroy the dishwasher, or bring a covey of dogs to further damage the property. Plus, I will pay a $400 damage deposit that may or not be refunded at some time in the future.

Whew! Maybe the Caymens next year. Probably cheaper including air fare.

OWNERS LISTEN!!
The Travelers Insurance is offensive to potential renters. It says to me that I assume the risk (with a 50% NON-REFUNDABLE deposit up front) of a major event that either prevents my getting there or the property not being available if I could get there.

Love the beaches of South Walton, but this policy from the Rental Agency causes me to consider somewhere else entirely, if it is a common practice.
Is it??

 

[Kurt]

I believe it is becoming more common.

 

[TooFarTampa]

It is definitely becoming more common. I have mixed emotions about it and I appreciate hearing your feedback.

Actually, I think it is fair in the sense that renters should not be able to obtain a refund just because there is a threat of a hurricane in the gulf or because of some other issues that may come up that have nothing to do with the agency or homeowner. However, I'm a little skittish about telling renters that in case of a mandatory evacuation, they cannot receive a full refund but only a credit for a future stay. In a year like last year, this makes some sense -- Dennis hit July 9 and our renters for that week were able to come five weeks later, so it worked out very well for all. (We did credit them for the lower fall rate.)

But most of the time the peak hurricane activity falls after the main rental season and if there is a mandatory evacuation, the renters would not be able to use their "credit" until the following year because the busy season at that point is usually over.

Management companies are trying to protect themselves and their owners, and I appreciate that -- the costs of maintaining a rental home near the Gulf are absolutely exhorbitant thanks to now-frightening insurance costs and by some measure rising property taxes, and rental income does not come close to making up the difference. If you do not live in Florida and are not faced with reading about these issues every day, it may seem off-putting. But it is pure economics and owners are trying to do what they can to protect their income stream.

That said, I understand how it can be offensive to potential renters. Without a doubt the travel insurance is a money-maker for the rental agencies (not the homeowners). I wonder if there are less expensive options out there. I would provide those options to my renters if I knew of some.

By the way, damage deposits are necessary. Just read some of the stories on this site! And so is that 6-hour gap on Saturdays -- any idea how long it takes to clean a house properly after renters have left it? There is no getting around leaving that window open for housekeeping to do what they need to do.

As for where you can get a better deal, I don't know of any. Renting a house is a far different experience than renting a hotel room for a week. I think overall the values in South Walton are very good.

 

[spinDrAtl]

Anybody---
Is it common practice in the South Walton area for a Rental Agent or owner to charge a 6.5% fee, payable to another party, that supposedly allows the Renter to recover his rental deposit in the case that Hurricane XYZ blows the rental property away before his arrival???

I have just paid a $1500 deposit agreeing that I will not try to check in before 4:00PM, nor out after 10:00AM (wasting 1 whole day), nor will I smoke, steal the ash trays, destroy the dishwasher, or bring a covey of dogs to further damage the property. Plus, I will pay a $400 damage deposit that may or not be refunded at some time in the future.

Whew! Maybe the Caymens next year. Probably cheaper including air fare.

OWNERS LISTEN!!
The Travelers Insurance is offensive to potential renters. It says to me that I assume the risk (with a 50% NON-REFUNDABLE deposit up front) of a major event that either prevents my getting there or the property not being available if I could get there.

Love the beaches of South Walton, but this policy from the Rental Agency causes me to consider somewhere else entirely, if it is a common practice.
Is it??

We allow our renters to check in early if the unit is ready or if no one is in there the night before. Checking out by 10 am is absolutely necessary in part because if you use a cleaning service, your unit might or might not be first on the list for that morning. We also tell our renters they are free to use the property before check in and after check out. Showers/bathrooms are available at the beach bar/grill on the property.

No smoking and no pets are standard things in our rental agreement. Our agreement also states clearly that the damage deposit will be refunded within 14 days after checkout upon verification of no damages.

Our hurricane policy is that if there is a mandatory evacuation or the property is unusable, then we give full refund for any unused days. However, the threat of rain from a storm that is in Texas is not the same thing.

We also have in our agreement that the renter has been advised to investigate travel insurance for their own protection (in case of illness, etc.) but we do not require anything be purchased. However, we do not refund because little Johnny got a cough the night before the trip when our unit has been off the market for 4 months.

 

[Rita]

Seems the travel insurance could be an option offered. Let the renters decide whether they want it or not..

 

[TooFarTampa]

Seems the travel insurance could be an option offered. Let the renters decide whether they want it or not..

I think that is the case. Our management company does not require it.

 

[ShallowsNole]

Most of the companies I've talked to, where this subject has come up, only advise that trip insurance be purchased...and it isn't purchased through the rental company.

At first I thought it was a bit rude not to refund in the event of a storm, but Dennis really impacted last year's rentals, both for the property managers AND the owners. Plus, a guest can use the trip insurance in case of an emergency on their end. So, it's probably a worthwhile investment.

If the mountains suddenly started having frequent landslides, properties in the mountains might have to rethink their policies too.

 

[DERBYGIRL]

We won't rent through an agency that adds on the insurance. Too many that don't. I think Ocean Reef does so we decided not to use any of their properties. Just sharing thoughts..

 

[Mango]

It is definitely becoming more common. I have mixed emotions about it and I appreciate hearing your feedback.

Actually, I think it is fair in the sense that renters should not be able to obtain a refund just because there is a threat of a hurricane in the gulf or because of some other issues that may come up that have nothing to do with the agency or homeowner. However, I'm a little skittish about telling renters that in case of a mandatory evacuation, they cannot receive a full refund but only a credit for a future stay. In a year like last year, this makes some sense -- Dennis hit July 9 and our renters for that week were able to come five weeks later, so it worked out very well for all. (We did credit them for the lower fall rate.)

But most of the time the peak hurricane activity falls after the main rental season and if there is a mandatory evacuation, the renters would not be able to use their "credit" until the following year because the busy season at that point is usually over.

Management companies are trying to protect themselves and their owners, and I appreciate that -- the costs of maintaining a rental home near the Gulf are absolutely exhorbitant thanks to now-frightening insurance costs and by some measure rising property taxes, and rental income does not come close to making up the difference. If you do not live in Florida and are not faced with reading about these issues every day, it may seem off-putting. But it is pure economics and owners are trying to do what they can to protect their income stream.

That said, I understand how it can be offensive to potential renters. Without a doubt the travel insurance is a money-maker for the rental agencies (not the homeowners). I wonder if there are less expensive options out there. I would provide those options to my renters if I knew of some.

By the way, damage deposits are necessary. Just read some of the stories on this site! And so is that 6-hour gap on Saturdays -- any idea how long it takes to clean a house properly after renters have left it? There is no getting around leaving that window open for housekeeping to do what they need to do.

As for where you can get a better deal, I don't know of any. Renting a house is a far different experience than renting a hotel room for a week. I think overall the values in South Walton are very good.

:clap_1: :clap_1: Well said TFT

 

[SMcQueen]

Thank all you owners for your responses to my original comments. I better understand your problems with us "Renters" and your respective Management Companies.
The OWNER of the property I have rented in October for 2 weeks intervened on my behalf and will provide the "Travel Insurance" at no charge to me. Mixed emotions about that:
1. A Renter should not have a problem forfeiting a "Reasonable" deposit on a property when he cancels for whatever reason and cannot reschedule. The original reservation has probably eliminated the owners' ability to rent to another client for the same time period. It ain't a hotel room. If Johnny gets a sore throat, bring him anyway, the Gulf Water will heal him quicker that a doctor.
2. The Owner was not even aware of "Travel Insurance" or the Management Company's policy until I mentioned it.
3. The Renter has supposedly done his homework and selected a property which meets his needs for a vacation. He has submitted a hefty deposit toward that rental, and assumed that the property will be available for his vacation. My Rental Agreement from the Management Company specifically states that it "WILL MAKE NO REFUNDS OF A DEPOSIT" even if the property is not even there due to a hurricane.
4. That ain't right. Please change it.

You OWNERS, why not make it simple for your renters?

1. Renters get their deposit back if a property is not available for any reason.
2. Inform your Management Company of that policy with your property.
3. Cut the "Travel Insurance" business out of your life. It does not seem to benefit anybody but the Travel Insurance business.
4. Enforce your "No Cancellation by Renter" policy as you see fit.

Still love that beach