Today, changes will be made to the way Property Damage Protection from CSA works. If you currently offer this insurance product to your guests or have previously included it in a quote, you were sent an email notice on Dec. 19 regarding this change.
I know you will have many questions so I'll try to address this step by step and provide details of the changes.
If you’ve chosen to offer your guests a Property Damage Protection plan through CSA, the traveler options on the payments page have changed. Travelers will now have a choice to purchase Property Damage Protection or pay the full amount of insurance coverage as a refundable damage deposit to you.
Why we are making these changes?
If you purchased an airline ticket online recently, you've seen that they give you the option to purchase an insurance plan. You might have noticed that the presentation gradually changed from being pre-selected for you in an "opt-out" fashion to not being pre-selected at all or "opt-in" only.
The travel insurance industry is constantly changing. While offering insurance in an “opt-out” (line item) manner used to be a common practice in the industry, new developments and consumer advocacy initiatives end up formalizing best practices for players in the industry. Our partner, CSA, is proactively addressing this topic and believes “opt-in” (when the guest chooses to purchase it) is the best practice to offer their products.
We are making these changes so that we can continue to provide you with access to products like Property Damage Protection and adhere to industry best practices.
So what are these changes?
- If you currrently don't use Property Damage Protection
- These changes do not affect you
- If you do use Property Damage Protection
- Property Damage Protection must be provided as an option to the guest and cannot be mandatory.
- We've changed the guest payment page to give guests a choice between purchasing the Property Damage Protection plan or paying the full amount of insurance coverage as a refundable damage deposit to you.
- You do not have to change any settings that you currently have
- You can still charge a separate refundable damage deposit of any amount that you set
- You might have to manage a refundable damage deposit. If you've never done this we have help content to show you how.
What is Property Damage Protection and how is it different from a Refundable Damage Deposit?
Property Damage Protection from CSA is an insurance product designed for guest purchase only. As an owner you may suggest a plan level to your guests to help protect them from paying out of pocket for accidental damages caused to your rental or belongings during their stay.
Refundable Damage Deposits is typically a sum of money collected directly by you to cover any potential damage caused during a guest stay. After the guests stay has been completed, the refundabled damage deposit is refunded back to the guests (less any assessed damage charges, if any).
Can I still set my own refundable damage deposit?
Of course! You'll notice in the below examples, the owner has a separate refundable damage deposit of $250 that the guest was required to pay.
What does it mean that I can no longer mandate Property Damage Protection?
It means that we will not include Property Damage Protection into the payment amount as a mandatory line item. It will be presented as an "opt-in" (choice) for the guest.
Alright, so now let's talk about how this works from your settings perspective. You can access the damage protection section by going to your Dashboard > Edit listing > Rates tab. Scroll down and you'll see the Damage Protection section.
Generally speaking you don't actually have to change any of your settings that you have today but I'm going to go ahead and walk you through the changes and how you can set up a different option.
You can setup damage protection with 4 different combinations by checking different boxes.
- Using Property Damage Protection
- Using a Refundable Damage Deposit
- Using both Property Damage Protection and a Refundable Damage Deposit
- Using nothing
Using Property Damage Protection
You choose the accidental coverage amount that you want the guest to be covered for. Choose from the 3 different accidental coverage amounts provided.
The guest will be able to choose whether they want to purchase the plan or they can choose to pay the full coverage equivalent as a refundable damage deposit.
Using a Refundable Damage Deposit
You can set your own refundable damage deposit amount.
The guest is automatically shown the refundable damage deposit as a part of the quote.
Using both Property Damage Protection and Refundable Damage Deposit
To give yourself more flexibility, you can choose to combine both options and use them together.
The guest is given the choice of how they want to cover any potential accidental damage and they will also see your set refundable damage deposit amount.
Here the guest has chosen to purchase the Property Damage Protection.
Here the guest has chosen the equivalent in coverage amount, which is added to your required refundable damage deposit amount.
This one is pretty self-explanatory. I do recommend you use one of the 3 options that I've outlined above.
1. You've never had to deal with refundable damage deposits before and now you need to deal with them. Click here