Vrbo Travel Insurance Explained: Top Tips for Hosts for Maximum Protection

Taking a side trip or holiday is meant to be a time to unwind, but connecting homeowners with other travelers and seeking unique accommodations worldwide comes with certain risks.

With a vast array of properties ranging from cozy cabins to luxurious villas, Vrbo is a leading vacation rental platform owned by Expedia. It offers an alternative to traditional hotels, providing personalized and similar accommodations for memorable travel experiences.

But travel plans change, trips get canceled, and property can be damaged.

These uncertainties make travel and purchased trip cancellation insurance a crucial part of trip planning. Vrbo offers various ways for guests and hosts to check in date, get trip cancellation insurance and protect themselves against these unfortunate events.

Read on to delve into the insurance options provided by Vrbo and discover why considering third-party insurance providers is also important.

How Does VRBO Insurance Work?

VRBO trip insurance policy (aka Travel Protection) is underwritten by Generali US Branch, and looks to protect property owners and guests from trip cancellations or interruptions.

Vrbo offers a comprehensive “Book with Confidence Guarantee” to protect travelers throughout their journey. This guarantee includes fraud protection for rental payments, re-booking assistance if a host cancels last minute, and support from a dedicated care team during their stay.

While 100% of the cost of a purchased trip will be covered in the case of trip interruption, the reimbursement for travel delay is limited.

Guests will also be reimbursed for prepaid, non-refundable fees related to their trip and other reasonable, out-of-pocket expenses like local transportation, accommodation, and meals.

If guests did not select to buy travel insurance at the time of paying for the booking, it is not the end of the world. They will still have a chance to add this option at a later stage via the booking confirmation page or post-booking confirmation emails. Alternatively, they can also go to the online portal of Generali.

Without this Travel Protection plan, guests would lose what they have paid thus far in the event that they should cancel.

In addition to reimbursing prepaid costs in the event of trip cancellation, interruption unforeseen illness, or delay, the plan also includes other helpful services like:

• 24-hour emergency assistance services
• ID theft resolution
• Telemedicine service
• Concierge services

Insuring Against Property Damage

Vrbo also offers a Damage Protection plan. In the event of accidental damage to the vacation rental property, the Damage Protection option offered by Vrbo can help to safeguard guests against extra expenses.

Not only is it convenient, but also affordable. For only $59, guests can get coverage of up to $1,500. This way, guests are also covered in case the property that they were staying at was damaged accidentally and the refundable deposit is withheld.

All in all, this option is ideal for big groups or families traveling with kids (or fur babies). It is also strongly recommended for guests who have booked a long-term stay or will be staying at a luxury rental.

How to Make an Insurance Claim

In the unfortunate event that you need to claim, rest assured that the process is easy. All you need to do is to complete a claim form, attach the necessary documentation, and submit it to the claims department at Generali.

What’s more, those who are unhappy with the Vrbo travel insurance can also cancel the coverage. To receive a full refund, it needs to be canceled within 10 days of purchase.

Is Vrbo Travel Insurance Worth It?

Opting for travel insurance is always the better choice. In the case of Vrbo, guests can rest assured knowing that it is offered by a very reputable insurance provider.

Vrbo’s Insurance Coverage Levels

Vrbo offers three levels of trip insurance coverage through CSA Travel Protection, underwritten by Generali USA:

1. Prime: Basic coverage for trip cancellations and interruptions.
2. Enhanced: Includes additional benefits like travel delay and baggage coverage.
3. Elite: Comprehensive coverage with higher benefit limits.

Coverage Limitations

It’s essential to recognize that Vrbo’s travel protection does not cover:

• Medical Expenses: Any medical issues or injuries during the trip.
• Cancellation for Any Reason: Policies do not include a cancel-for-any-reason clause.

While Vrbo travel insurance might not cover all possible situations, it does offer an additional damage protection program that includes personal liability for accidental property damage. Guests will have a hard time finding this option with a third-party insurance provider.

How Can Hosts Protect Themselves?

While Vrbo’s core intention is to ensure the protection of guests, there are added ways in which hosts can safeguard their short-term rental business.

Here are two available options for what Vrbo insurance covers for hosts:

A refundable damage deposit

A Vrbo property damage deposit covers property damage during a guest’s stay, with the host setting the amount charged at booking. This fee appears alongside other fees, like cleaning and service charges, and is paid upfront by guests. Vrbo holds the deposit for the duration of the stay.

If damage occurs, you have 14 days after checkout to file a claim. If no claim is submitted, the deposit is automatically refunded to the guest.

For partial claims, the remaining balance is returned to the guest within a week.

While a refundable damage deposit might deter some bookings, most guests understand its necessity and appreciate the prompt return if no issues arise.

Keep a card on file

This approach is currently the default damage deposit policy of Vrbo. Basically, by opting to keep a card on file, the rental platform will save the credit card details of a guest on their system.

Similarly to when a refundable damage deposit was charged, a host will then have up to 14 days after checkout to submit a damage claim. If a claim was filed, Vrbo will take it upon them to notify the guest by sending them an email with the amount that is claimed as well as a description of the property damage.

If you are worried about how secure this option is, you can rest assured knowing that Vrbo will cover the damage if the credit card has reached its limit or has expired.

Should Hosts Get Extra Third-party Insurance for Vacation Rentals?

In addition to charging a refundable damage deposit or asking Vrbo to keep a card on file, short-term rental hosts are strongly urged to invest in additional third-party vacation rental insurance.

While Vrbo offers attractive liability insurance for damage to another person’s property or traveler injury, this, too, has exclusions.

What to Consider with Third-Party Insurance

When evaluating third-party insurance coverage options, consider what is and isn’t covered. Key factors include:

• Cancellation Reasons: Ensure the policy covers cancellations for reasons relevant to your trip.
• Medical Coverage: Verify if medical emergencies and evacuation are included.
• Property Protection: Assess coverage for potential damages to the rental property.
• Exclusions: Understand what scenarios are not covered by the policy.

Third-party Alternative Insurance Providers

In the US, the platform officially endorses Proper Insurance as their preferred comprehensive home insurance policy covers them. In the hosting community, Proper is also one of the most popular insurance providers. However, many hosts have commented that they are quite expensive.

If Proper does not fall within your budget, you can also try:

• CBIZ
• Allstate
• Farmers Insurance
• Nationwide
• Safelystay
• RentalGuardian
• Superhog

No Travel Insurance Plan is Perfect

Both guests and hosts are encouraged to sign up for insurance. It might be an extra cost, but it can prevent many tears and headaches.

The reality is that no insurance plan is perfect and you will always find that it lacks coverage in certain areas.

While Vrbo’s travel protection offers significant benefits, supplementing it with third-party insurance can provide comprehensive additional coverage, and peace of mind. Thoroughly reviewing what each policy includes and excludes will ensure you are adequately protected throughout your travel experience.

For more detailed information, visit the Vrbo Travel Protection page.

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