Cancellation Policies Explained

posted on Nov 20

Here is an excellent explanation of the cancellation policies used by most Vacation Rental owners. We hope this helps you to understand how and why these work. Thanks to Cindy Rhoades of Vacation Homes of Key West for sharing this on her blog (link below)

"In the vacation rental business, most guests rent vacation properties well in advance of the trip, and most rental companies have no cancellation and no refund policies. While at first thought, a 'no refund' policy may seem tough, it's important to recognize the fact that property owners and vacation rental agencies that provide and maintain vacation rentals, depend on this business income to pay for property mortgages and expenses for their livelihoods.

The good news is "Trip Cancellation and Interruption Insurance" guarantees guests a refund for non-refundable pre-payments for vacation rentals, while at the same time guarantees property owners and rental agencies their expected income. Prepayments and nonrefundable deposits generally amount to thousands of dollars for a vacation rental, and the insurance can provide coverage for your investment. Insurance can also provide coverage for cancelled flights, an accident, and medical expenses that may not be covered by health insurance.

It is also important to be sure you choose the correct kind of travel insurance that will cover possible loss of stay at your vacation rental. Also pay attention to when the insurance needs to be purchased. It is generally required that you purchase it when the final payment is made for the vacation rental and no later than 30 days prior to arrival."

Thanks to Cindy Rhoades
Vacation Homes of Key West
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