Trip Cancellation

[luvthebeach57]

I'm planning to rent a condo this summer from an owner who advertises on VRBO. It wasn't until two weeks after we had been e-mailing one another that I discovered that the owner uses a rental mgmt company. The rental mgmt company told me that we will have to purchase trip cancellation insurance (6.5% of total cost which will be about $125) if we need to get a refund. Without the insurance, we will NOT get any refund even if we need to change the week we are renting and they are able to re-book the house. If this happens, I wonder if the rental mgmt company gets to pocket our money or does it go to the owner? Does anyone know if owners are able to "override" the rental mgmt policies? The trip cancellation insurance company will cover illness and mandatory hurricane evacuation, but not other extenuating circumstances that could possibly come up. I've been renting vacation homes for 25 years and I've never had to purchase trip cancellation insurance before. Is this something that is becoming more prevalent with beach rentals?

 

[Little Fish]

luvthebeach57:

If you luv the beach, and luv the property, why worry about $125 to insure yourself against losing your money in the event that you need to cancel?

Little Fish

 

[Rather B Paddlin]

Consider not using a rental agency, then rent directly from owners who manage their own property. Maybe they would be more flexible. Most owners will refund your money if the week is rebooked or work something out with you if unforeseen circumstances occur.

 

[Mango]

The cancellation insurance is not pocketed by agencies. It is an insurance purchased through an insurance company. The agencies started this after multiple storms rolled through in 2005.

If you don't want to pay it and a storm rolls through during your vacation, would you expect the owner to refund you? They are taking just as much risk as you, and also paying in much higher windstorm premiums since all the named hurricanes.

As far as rebooking the house, I will refund someone's monies if they have to cancel for personal reason and I can rebook the time. Fortunately this has not happened for anyone. I think the insurance when purchased by the agency goes hand in hand with the windstorm insurance, and I don't think they can separate it. Beside even if they could, the difference would probably be nominal.

For once I have to agree with Little Fish.

 

[Little Fish]

Mango:

"For once I have to agree with Little Fish."

I can't believe it! I almost fell out of my chair.

Cheers!

Little Fish

 

[SHELLY]

Mango:

"For once I have to agree with Little Fish."

I can't believe it! I almost fell out of my chair.

Cheers!

Little Fish

LF,

It happened to me once....I still have to take medication to this day.

 

[Mango]

 

[Matt J]

Go for the trip insurance, you never know.

That said, the trip insurance money goes to an insurance company as Mango said. If you don't want the trip insurance and just pay up front and then cancel, the management company will take it's normal commission and roll the remainder to the owner just like a regular renter. Sometimes you get lucky and they can rebook the unit to someone else.

Rental companies have gone to this policy since there is a direct correlation of family deaths to a rainy weekend. I personally spoke to a woman who called teary eyed stating she needed to cancel due to an emergency brain cancer surgery, but if we couldn't refund the money she was willing to change the dates to the following week. Aside from the amazing recovery time for brain surgery, we were also in the cone for an impending tropical storm.

Additionally, you should find out exactly what the insurance covers for cancelation. None of them cover a rainy forecast unless it is a hurricane.

 

[InletBchDweller]

To me if you go to VRBO you expect that - - - BY OWNER!!

I understand that many people are turning to management companies that will manage their property at a reduced commission b/c they only advertise on VRBO. Some big companies use it or the owners will forward the rental to the company for the company to handle and then they (the owner) are not charged as big a % from the rental company.

I feel that if you make contact with an OWNER then that OWNER should tell you UPFRONT that he/she uses a rental company so the potential renter needs to expect to check in at an office and other fees could/would be charged.

Now this is just me and how I feel. I have several rentals through VRBO but I do everything myself. I have had people cancel and not rebook and then cancel and rebook. Trust me, I totally understand that things come up and trips have to be cancelled. Mango is correct the $ goes to an insurance company. I did not have rental property after the storms so I dont have a 'bad taste in my mouth from cancellations'. I do understand if someone who lost 2 months of rentals and nothing to show for it wants cancellation insurance...

People (not saying you luvthebeach) have to remember that people who rent their property it is a business and has to be treated as such.

So, luvthebeach, I guess you will have to decide if you are hellbent on this place or go and find another. Unless it is the 4th of July you probably will still have PLENTY of options. ;-)

 

[InletBchDweller]

Go for the trip insurance, you never know.

Rental companies have gone to this policy since there is a direct correlation of family deaths to a rainy weekend. I personally spoke to a woman who called teary eyed stating she needed to cancel due to an emergency brain cancer surgery, but if we couldn't refund the money she was willing to change the dates to the following week. Aside from the amazing recovery time for brain surgery, we were also in the cone for an impending tropical storm.

.

how sad that people use a something like that as an excuse...
all I can say is KARMA!!