Damage protection (vacation rental)
Vacation rental damage protection is any arrangement that pays for guest-caused damage to a property: a guest-paid damage waiver, a per-stay damage insurance policy, platform programs such as Airbnb's AirCover or Vrbo's damage protection, or a refundable security deposit. The terms describe different mechanisms, not one product.
By Andrew Bate, Co-founderReviewed by Stuart BateUpdated
Why this matters for property managers
Property managers mix these mechanisms without always realizing it — a deposit on direct bookings, AirCover on Airbnb stays, a waiver elsewhere — and end up with inconsistent rules, different claim processes, and gaps on the channels that matter most. A single program that enrolls every reservation through the PMS, applies the same limits everywhere, and keeps platform protection only as a backstop is easier to explain to owners and far easier to run.
Related terms
Browse every term in the insurance glossary for property managers.
Damage protection (vacation rental): common questions
What is the best damage protection for a vacation rental property manager?
For portfolios of ten or more homes, a guest-paid damage waiver program with insurance above a self-insured retention. It converts better than deposits, applies on every channel, and lets the manager keep fee revenue while transferring catastrophic losses to an insurer.
Does platform damage protection replace my own program?
No. AirCover and Vrbo's programs apply only to bookings made on that platform, on the platform's terms and timeline. They do nothing for direct bookings and can be declined at the platform's discretion.
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