COVID-19 – VACATE ORDINANCES, REFUNDS, and TRAVEL PROTECTION

The below guidance relates to travel protection programs, and is not intended for Master Cancel, Damage Protection, and Liability protection programs.

Concerning various orders to property managers from civil authorities issuing prohibitions against short term rental activities due to COVID-19:  

  • We have received many similar notices from property managers around the country.
  • These ordinances originating from city, county, state, and real estate commissions direct property managers and rental agencies to cancel their existing reservations and prohibit any new reservations during a specific time period. 
  • Many of the ordinances require that the property managers and rental agencies refund the guest in full (unless the guest has rescheduled the stay to a later date). 
  • InsureStays encourages property managers and rental agencies to adhere to the ordinances of law and recommendations of their governing real estate boards.   
  • Travel Protection that has been purchased by guests reimburses the covered travelers for the following coronavirus related items: 
    • Illness or death of traveler or anyone in their traveling party; 
    • Illness or death of immediate family member; 
    • Medical Quarantine issued to a specific named traveler or someone in their traveling party.  
    • Job loss as defined in the policy.
    • CFAR benefit (if purchased) applies to cancellations of any reason not specified in the policy. 
  • The covered reasons listed in the coverage protect the traveler, rather than protecting the owner of the property.  To our knowledge, this is the same for our competitors offering travel protection to the short term rentals industry at this time. 
  • In situations where it is required by ordinance that the guest be refunded, there is no claimable loss of the reservation amount paid by the guest. This is true for our competitors offering travel protection programs as well. 
  • Nationwide (understanding that it is an unexpected hardship for the owners to reimburse travelers) has offered  the following:  
    • Nationwide® has approved modifications for those affected by COVID-19 up to 18 (eighteen) months from original trip dates. 
    • If property manager/owner refunds the guest in full, Nationwide has approved refunding the guest the travel protection premium cost. 
  • Where permitted by law, property managers are encouraged to be flexible with their guests and  modify the booking; the travel insurance policy can be modified along with the reservation.  
  • You can obtain more detailed guidance at https://insurestays.com/stay-feed/.