Last Updated on July 11, 2023 by Rental Recon
If you rent out your home on Airbnb, you may be interested in Waivo Insurance. Waivo is an alternative to traditional security deposits; their coverage protects against accidental damage up to $1,500. To answer any questions about this unique protection program, read on…
Our Waivo Review Summary…
Waivo’s mission is to create an easy-to-use program that provides peace of mind, an additional revenue stream, and the broadest protection in the industry. We love how this insurance solution has been designed with the property manager in mind, saving time and resources. Overall, we find Waivo the preferred choice for many vacation rental owners!
Here’s How Waivo Stacks Up…
What is Waivo?
Waivo is a new way to protect your rental properties. The Waivo program is a sister company of Proper Insurance, a vacation rental property insurance company. Its goal is to offer the broadest damage protection in the industry while making it simple for both property owners and guests. The program works automatically on every rental, and its fees are low and nonrefundable. It also reimburses guests quickly for any damage.
How Security Deposits Work for Airbnb
Airbnb’s security deposits are a way for hosts to keep a portion of the rent from guests who damage the property. The amount you need to collect varies from property to property. Airbnb hosts may choose to require a security deposit of $100 to $5,000 USD for their listings.
Airbnb will place an authorization hold on the guest’s credit card on the check-in date, so they cannot use their card until they check out. You may need to submit your claim to receive the money within 14 days after your guest checks out. Then, the company will release the authorization hold before the next guest checks in.
When calculating the damage deposit, Airbnb uses sixty percent of the rental’s nightly rate and then adjusts it for longer stays. If you set a higher security deposit amount, Airbnb will use the higher amount.
The Pros and Cons Of Using Security Deposits
While the security deposit system is helpful for many hosts, it is not very well-oiled, so it may be difficult to deal with issues throughout the process.
In some cases, guests prefer to pay a damage waiver fee instead of a security deposit. A security deposit can quickly add up, so many guests choose to forfeit it instead. A damage waiver fee can help set your listing apart from the competition and encourage repeat bookings.
What Is a Damage Protection Program?
Waivo’s damage protection program is the most comprehensive in the industry. The protection includes accidental, incidental, and intentional damages caused by guests. In the event of a guest breaking the rules, Waivo will reimburse the owners for any items damaged in the rental. In addition, you won’t have to worry about contacting guests to let them know that they can claim damage. And this will result in better reviews for your rental.
Waivo Vs Traditional Security Deposits
Waivo works to replace the traditional security deposit and damage protection plan. The main difference between these two systems is that Waivo is much more comprehensive. Unlike other damage protection plans, which require the property owner to manage multiple forms of communication with guests, Waivo offers a simple and straightforward process.
Waivo’s “all-risk” protection program offers the most comprehensive coverage available in the industry. It covers accidental and incidental damage caused by guests. Damages are also covered for items that have been soiled or spilled.
Security deposits can be a barrier to guest entry. In addition, a guest doesn’t know the person or company managing the deposit. The process of collecting the deposit, handling it, and refunding it is time-consuming. A Waivo plan eliminates all these hassles.
The Bottom Line
Using Damage Protection is better than Security deposits for a number of reasons. Not only does it protect the property, but it also deters guests from irresponsible behavior. Damage protection is much cheaper than security deposits and has fewer hassles. This option eliminates the time and hassle of dealing with security deposits and is automatically applied to new bookings.
How Waivo and Proper Insurance Differ
Proper Insurance is a home insurance company, and Waivo is an alternative to traditional security deposits. Founder Darren Pettyjohn co-founded both companies, and both make vacation rental management easier and more convenient.
Waivo eliminates the need for a traditional security deposit. Instead of collecting an unsecured amount from guests, your guest will only pay a small nonrefundable fee. Guests prefer it and are more likely to leave better reviews since you won’t be confronting them directly over any damage.
Proper Insurance covers the building and contents of a rental property for the entire replacement value. It also covers the property manager’s liability. We recommend having both Waivo and Proper Insurance to fully protect your vacation rental. To get your Proper Insurance quote, click here.
Why Do You Need Damage Insurance for Vacation Rentals?
Damage insurance can cover everything from your personal liability to the contents of your rental. It can also protect you against accidental damage and loss of worth of property.
It Protects Belongings
A damage protection program can help you recover the costs of replacing your belongings.
Protects Against Accidental Damage
Damage prevention is a critical part of ensuring that your rental property remains in good condition. It is important to regularly check your rental property to ensure that nothing has been damaged and to document the damage so that you can file a claim with your insurer or deposit scheme if necessary.
Why Choose Waivo?
Waivo’s damage program is designed to offer peace of mind for vacation rental property owners and guests and is easy to implement. Compared to traditional plans, their service has more benefits and makes the process easier. All you have to do is charge a nominal nonrefundable fee for each rental, and your property is covered automatically. On the other hand, to fully insure your home, you will need to have separate home insurance, such as Proper Insurance.
Here are ways Waivo can further help:
Guests Prefer a Small Insurance Fee
Security deposits are often a big turn-off for guests. They are intended to protect rental properties from untrustworthy guests and provide a safety net in case something goes wrong. But they cause guests to believe the host is dishonest or is simply trying to secure extra revenue.
A Quicker Process
Waivo is an excellent way to protect your rental from accidental damage by guests. Their programs are available on a per-booking basis and allow you to choose the amount you want to pay for coverage. These programs are backed by a licensed insurance agency.
Better Reviews
Security deposits are a common complaint among guests, and many are frustrated by how much money is returned in a timely fashion. To improve your reviews, consider giving Waivo a go as they remove the need for a security deposit altogether and will allow your guests a better renting experience.
Our Conclusion
We love how Waivo offers an alternative to traditional security deposits. Traditional damage protection plans require a security deposit, which can be cumbersome and provide limited coverage. Waivo protects you from financial ruin and can save you from paying a large security deposit.
If you’re thinking about renting out a vacation home, we feel Waivo is the way to go for rental Insurance. Ready to get started? Click here to get your free consultation.
