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In the vacation rental business it is customary for a guest to take the risk of not being able to come and enjoy their rental. A guest is purchasing a certain period of time in the future. With a large house like ours, guests need months to coordinate their plans. It is almost impossible to find a replacement tenant at the last minute. If you wish to insure against the possibility that you will not be able to use your reserved time then you should purchase insurance. This will shift this risk of travel interruption onto the insurance company. 

During your checkout you are provided with the opportunity to purchase two types of insurance.

 

  • Standard Travel Insurance which covers you for unforseen illnesses and travel disruptions.
  • CFAR (Cancel for any reason) trip insurance where you get all of the benefits of  Standard Travel Insurance with the ability to cancel your trip for any reason. You must buy CFAR insurance within around 14 days of the purchase of your trip.
We make no money on this and make no representations regarding the coverage.

COVID-19 Insurance News

This is new information direct from an AIG representative regarding COVID 19 and their TravelGuard product. This is similar to all travel insurance policies now.

COVID 19 is no longer considered an “unforeseen” event, and thus restricts some of the coverages.  However, if you or one of your travelling companions were to become sick and unable to travel, coverage would still apply.  TravelGuard also has a cancel for any reason endorsement that can be purchased within 21 days of initial trip payment, with options for 50% or 75% of non-refundable costs.  Please see the attached brochure and links regarding COVID 19:

TravelGuard Corana Virus Update https://www.travelguard.com/covid19notification

TravelGuard Corana Virus FAQs https://www.travelguard.com/travel-news/coronavirus-advisory

Please note that if you have questions specific to any insurance product you should discuss them directly with the insurance company. 

Standard Insurance versus CFAR

Standard insurance does not cover “concern” over Covid-19 but will cover a companion that gets sick, such as someone who gets a doctor’s note advising not to travel.
I spent a lot of time on the phone with the insurance company. They state that ANY companion who gets sick and causes a complete trip cancellation will be covered.
You can buy standard insurance and CFAR insurance (Cancel for any reason) during the check out process or directly from this link

I ran some quotes and got these prices on $9,000 of coverage

Travel Insurance

Anything can upset your carefully made travel plans for millions. In the travel industry, the guest generally assumes the risk that the travelers will all still be able to make the trip. This is especially true with a vacation rental house. Unlike a hotel, a vacation rental is a small operation and does most of its bookings a year in advance. Last-minute bookings (within 6 months) are uncommon. This is why cancellation policies are typically strict. An empty week is one that will never be filled and will affect everyone involved in the business. To protect our guests we tell them that they should always purchase travel insurance. This moves the risk away from the traveler to the insurance company. It is the only reliable way to prevent travel interruptions from coming out of your pocket. The cost of travel insurance typically runs about 7% of the insured value. This type of insurance can cover a lot of situations but is not going to cover ALL situations. Consult the fine print of your potential policies carefully.

Recently the Corona Virus has brought to mind the limitations of travel insurance. Most travel insurance policies will not cover items known as “Force Majeure” or situations that could reasonably be foreseen. These are big events such as war, terrorism, earthquakes, and Epidemics. There is a type of policy called CFAR – cancel for any reason. These are much more expensive and cover only 50 to 75% of the cost of a trip. They are the most searched type of policy but the least purchased type of policy due to their high cost. CFAR policies run from 10% to 15% of the cost of a trip. Even a CFAR policy may not cover force Majeure or situations that could reasonably be foreseen.

Nevertheless, we HIGHLY RECOMMEND the purchase of travel insurance. If you are young and confident you can forgo the purchase. That’s fair but remember that you are 100% responsible for the rent of a vacation home as laid out in the contract.

Article on Vacation Rental Refunds from CNN
Article on Travel Insurance in the Washington Post

Overview of Insurance Programs

Travel Insurance Offered on Checkout and at this link above

For your convenience, our dashboard sells, on checkout, the same insurance from Nationwide / Rental Guardian that we outline above.

It does not offer CFAR on checkout. You will need to use this link to buy your policy separately from the checkout.

This program is run by a third party and we make no representations regarding it. Travel insurance is a contract between the guest and the insurance company.  We aren’t involved in making, receiving, or approving any claims, and the travel insurance company won’t be sending us any money.

Other Travel Insurance

What an insurance policy might cover is key. They are not going to cover big things that affect a lot of people. These are called “Force Majeure” or sometimes as acts of God.
Claims due to known, foreseeable, or expected events, epidemics, or fear of travel are generally not covered, and coverage can vary by state. “

https://www.allianztravelinsurance.com/coverage-alerts/2019-novel-coronavirus.htm

The exact language of the policy will control. A sympathetic doctor could provide you the note that you might need.

CFAR Insurance

The only policy that allows for Force Majeure is “cancel for any reason travel insurance”. This seems to be the only option that will cover circumstances such as “fear of travel”.
Here is a firm that offers CFAR, it is owned by AIG
and another by Generali

Blanket Insurance for regular travelers

Here is a type of travel insurance that covers an entire year of travel and medical evacuation.