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Three couple renting, one cancels

Discussion in 'Insurance' started by John from PA, Aug 9, 2017.

  1. John from PA

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    We are three couples renting a VRBO facility in March of 2018. There are cancellation terms that enable us to cancel up to about December 2017. But lets say we go beyond that date and one of the three couples drops out, a medical reason for example. This obviously increases the cost to the remaining two couples. Is there any type of policy that covers such an event?

    I asked this question the Allianz group and got a reply to check the various plans on their website. Sort of a CYA answer in my opinion.

    Regards,
    John from PA
     
    #1
  2. Neil

    Neil Moderator
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    I know there are some travel insurance policies do this but they generally don't cover these type of rentals.

    Airbnb I believe has insurance- you should call them and ask what their policy covers. But be prepared to split the difference e between the rest of you if it happens.
     
    #2
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  3. jsn55

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    I'd call a travel insurance broker, they may be the best source of this kind of detail.

    I do know about people who join up to do things like this, and everyone involved puts up some money as an "escrow" in case of a future problem. If no problems arise, there's a nice little fund to buy supplies and food.

    If all 3 couples buy travel insurance that might help. But one of the couples can't just 'drop out', it would have to be a covered reason such as sickness or accident.
     
    #3
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  4. ADM

    ADM

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    All 3 couples should get their own travel insurance policies. Jsn is correct, there'd have to be a covered reason for one to drop out and be reimbursed. It wouldn't be fair to expect the other 2 couples to incur an increased cost just because 1 couple decides not to go. I think the escrow account is a great idea.
     
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  5. Tanya

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    You may want to draw up a separate contract between the 3 couples that is effective after the no refund date. I am not entirely sure that there is an insurance policy that will cover this (there may be). But I know that you could enforce a separate contract between you and the other 2 couples.
     
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  6. Neil

    Neil Moderator
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    They always have to get a separate policy if they don't live at the same address.
     
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  7. ADM

    ADM

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    I know. I just meant it would be a good idea for all 3 couples to have travel insurance policies to minimize any chance of a financial dispute should 1 couple need to cancel.
     
    #7
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  8. AAGK

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    Not sure why one couple cancelling past the deadline would affect the others. This is not really a travel insurance issue. In my group, we would assume they still pay. Decide amongst yourselves how you would feel if one couple drops out right before the deadline, while the booking is cancelable. Do you have your heart set on this house, still affordable, etc..... after the deadline then everyone contributes equally.
     
    #8
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  9. jsn55

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    That would be my take on the subject too, AAGK. But I don't think the rest of the world sees things so clearly as we do! They will grab what you and I consider to be a non-issue and cause a huge ruckus. Remember that woman whose kid damaged some patio chairs in a vacation rental? She didn't want to pay for replacements, she wanted to repair the chairs herself! She could not understand why this was not a good idea.
     
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  10. Travelgirl5922

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    With VRBO and other house-rental programs, generally the lease or contract is signed by one person only, and that one person is legally responsible for the entire cost of the rental. I would discuss this among the group before signing anything, and make sure everyone agrees to the same policy. In my group, the person/couple who drops out would either remain responsible for their share of the cost, or they'd be responsible for finding someone to take their place that would be acceptable to the rest of the group. This has always worked in my circle - a mixed bag of 40-50-somethings, some who are married couples and others who are single.
     
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  11. jsn55

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    A VERY good point!
     
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  12. ADM

    ADM

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    Exactly! Things should work like this but people can be ridiculous in these situations.
     
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  13. Neil

    Neil Moderator
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    And get the agreement IN WRITING and every person should sign it. Then there can be no misunderstandings.
     
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  14. LeeM

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    Also, be certain the rental is legal in the city in which you are renting; if not, insurance may elect to not cover losses related to it if owner is renting it out illegally as a vacation rental when their are state/city laws prohibiting such rentals (as in NYC and elsewhere).
     
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  15. sas80

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    just responding to something that was mentioned that is a side note to the issue...

    When I read the initial post, it was mentioned that this would increase the cost on the other two couples. My assumption was that the reason they were asking for insurance to cover this scenario was that it would place undue financial hardship on the other two couples if one of the couples dropped out.

    Not every has the 'means' to vacation freely (like others do) or the means to absorb costs they have not planned for. Some people actually budget for vacations, view them as ultimate luxuries, and find it financially difficult when unknowns occur.

    I may exist in a more generous income bracket and, therefore, my solutions would be different. But I shouldn't assume that my solution set works for everyone. That what my friends and I would do and/or how we would handle this, is the one size fits all solution.
     
    #15
    Last edited: Aug 18, 2017 at 1:07 PM
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  16. Neil

    Neil Moderator
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    sas we see this all the time when we put three people in a cabin on a cruise and one has to cancel. The price for the other two goes up because of the cancellation of the third. There ARE some travel insurance policies that cover the others in this situation but some of them don't cover VRBO rentals. So your post is valuable.
     
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