this new insurance policy only applies in cases of accidental damage. it will not reinburse an owner in cases where a tenant trashes a unit, punches in a wall, rips a screen, runs a fork across a table, or causes any other damage that does not occur strickly by accident. previously, renters would clean their unit before they left, as is required in the lease, because they did not want to lose their deposit. that is no longer the case. it will now take cleaners longer to turn over the units, and they will increase what they charge the owners.
the security deposit was supposed to protect the owners against damage to their properties, yet the owners had absolutely no imput into the decision to implement this worthless insurance plan. the renters will now have a choice of either buying this $50 accidental insurance policy or leaving a $1500 security deposit. how many renters do you believe will choose to leave a $1500 deposit? owners will now be forced to go to court to recover any damages caused by renters. what will that do for ocean city's image as america's friendliest family resort?

why can't owners be given a choice in their listing agreement with the realtors: either they are willing to accept the new insurance policy or they choose to continue to require the traditional security deposit of $200 to $500.

This is how rentals are done in the Outer Banks where storm cancellations are common. The insurance this year was $88. You have to accept or decline at the time you sign the lease. It is spelled out very clearly that if you decline and there is an evacuation that there will be no refund. You also do not pay a security deposit down there. Actually surprised to hear that its not been handled the same way here.

this new $50 insurance policy will not cover inclement weather and evacuations. renters will have to buy an additional policy if they want to be covered for lost vacation time.

Manny Avino
Since the reporter mentioned me personally, I am compelled to give you the perspective of the homeowners who hire the realtors to market their properties and pay their commissions.
It is obvious that this report was written to give the realtors perspective a favorable twist. When I was contacted by this reporter, I provided him with a lot more information/concerns than stated in the article. First, none of the information received from the real estate agents stated that they will file the claim. Secondly this was done without any input from the homeowners and therefore been forced on us. While the tenant is given the choice of buying the insurance or paying a $1500 security deposit, we the homeowners are not given the choice of whether we want to accept the damage insurance option or continue withholding security deposits.
I want to clarify that homeowners do not have a problem with tenants purchasing travel insurance. Travel insurance has nothing to do with damage insurance. Our only concern is damage insurance and the consequences it will have on us and our properties. We want the brokers to continue requiring security deposit and not have this replaced by damage insurance.

We have the following concerns which were left out of this article.
1.) Security deposit is required because it makes the tenants more conscientious about not doing any damage to the home in order to have their security deposit returned. Now for the mere price of a $50 insurance policy, the tenants do not have to care about damages done during their stay. Obviously people take greater care of property when they have money to lose. If they have nothing to lose, tenants will be more careless about not damaging anything and replacing items that they have broken.
2.) Insurance only covers accidental damages not the Intentional damage that is sometimes done by the tenants.
3.) Besides maintaining our properties we will have to deal with the insurance companies to be reimbursed.
4.) The insurance policy will not cover additional cleaning charges by the cleaning companies when the properties are left in bad condition.
5.) Contrary to what the real estate brokers would like us to believe, this “Accidental Damage Insurance” does not benefit the homeowners at all.
Who does this benefit? The real estate brokers because they won’t have to deal with issuing security deposit refunds and the tenants who just have to pay $50 and not care if they or their children damage our properties.

Actually I can't understand why owners continue to book through agents at all. For a small fraction of their cost you could list your property on one or more of the popular vacation rental sites on the internet. It is much easier and convenient for the owner and the tenant, and I personally have had no problem finding quality tenants.

Manuel, I could not agree with you more. The only ones who will benefit from the forced accidental insurance are the realtors and the insurance company. Other than if there is truly major damage to a rental unit, the insurance is not worth forcing on potential renters. For 50.00 it not only relieves the renters of all obligation in keeping our units in good condition but it relieves the realtors of any obligation as they will defer to the so called insurance company for any claims that a homeowner might need to file. For as much as the realtors make on the commissions, it might have been good business to give owners the choice of requiring a security deposit or accepting the insurance policy. They can't seem to stop coming up with clever ways to rape the renters--60.00 processing fee, 50.00 accidental damage insurance, trip cancellation/evacuation insurance plus the cost of the rental. Jeez, I guess its not a good year for us homeowners to raise rates on our summer rentals............as far as booking through sources other than realtors, I charge a 400.00 security deposit and have never had a problem. I think it is nothing more than a big money maker for the realtors. The 250.00 security deposit was a joke but at least renters wanted to make sure that it was refunded at the end of their stay.

One more thing, let's not forget that the realtors still get to solicit the renters as potential buyers----obviously there is no concern for the homeowners if there has been no discussion and no choice. The renters get a choice but not the homeowner who is expected to provide everything right down to beach tags. Does this insurance cover burned out AC from the renters cranking it down to 62, does it cover broken appliances, burnt pots and pans, ripped off vertical blinds, etc. etc. Does the policy cover rug cleaning at the end of the season as stains pile up or is a claim filed for every stain found on a Saturday turnover? Clogged washers from putting sandy towels and blankets in the wash?? Smoking inside the unit?? cracked decks from parties?? Sounds like their way or the highway if one uses the realtors to rent their properties. At least we know where we stand. I will rent less and use other sources. Perhaps I need to find out more information on specifically what is covered and what is not. How will accidental vs. intentional be defined? Too many questions not enough information.

I believe that in the Outer Banks the realtors build that accidental damage insurance into the rate of every rental. If you damage anything you have to declare the damage when you turn in the keys or else it will not be covered. The travel insurance is optional to the renter and is $88 from the realtor we use. We do not pay a security deposit down there.

Here is the stated policy on damage from the agency we use: "We have learned that our vacationers do not travel hundreds of miles to damage a home. At the same time, experience also tells us accidents can and will happen. Included with your rent is our Accidental Damage Program (ADP). Outer Beaches does NOT require a separate security deposit or a security deposit waiver fee in addition to the rent. Under ADP you will not be required to pay for accidental damage to the home or the personal property of the Owner contained within the Premises, up to a limit of $2,000 per reservation; Outer Beaches has undertaken this obligation as a part of our Property Management Agreement with the Owner. Damages exceeding $2,000 will be the responsibility of the Tenant. Click here for more information about ADP."

Food for thought.

Manuel Avino
When you state that in the Outer Banks, if you damage anything you have to declare the damage when you turn in the keys or else it will not be covered. If a tenant forgets to declare a damage then who is responsible for the damage? If the damage is not accidental who pays for the damage?

Manuel Avino
I will not list any of my properties with the brokers that are forcing this on us and I encourage other homeowners to do the same. I had a lot of success obtaining tenants thru the vacation web sites.

Mr. Avino, I think you (and Vic) are panicking for no reason. As Duffer states and I can attest, this is standard in most vacation areas. It's not new, it's just new to OC (they are actually behind the times on this). If it didn't work for landlords, it wouldn't become the standard.
Here's another thing: if you rent your property through VRBO, they use this insurance too!!

This certainly seems to help protect renters at the expense of owners, who will be left to fight the big insurers on their own cost. It is classic shifting of risk. We will continue to require a security deposit. If owners stick together the realtors will have to listen. Without owners, they can't make their 12%. Just how much will it cost you to litigate against a giant insurer over a less than $500 claim?

Actually, this gives landlords a higher level of protection: $1500 in damage protection vs.the traditional $200 (avg) of damage protection.

steve purdy speaks like a true realtor practicing cya. he wants us to believe that an insurance policy that only covers "accidental" claims is superior to the present system that covers "all" loses to owners. you truly must believe that we are fools. in addition, at vrbo and all other internet sites, the owners are able to ask for whatever security deposites that they feel are necessary. way to try to twist the facts.

"If owners stick together the realtors will have to listen. Without owners, they can't make their 12%."
This comment is right on the mark. Owners, take your business elsewhere. Realtors, give the owners a choice to use the insurance or require a traditional deposit. Why would you be so arrogant as to force the decision on us?

Manuel Avino
Notice to owners not all realtors are doing away with requiring security deposit. I encourage all owners to list with the following real estate offices.
1.) Century 21
2.) McCann Realtors
3.) Fasy Real Estate
4.) Weicher
5.) BooktheJerseyShore.com
These realtors are giving owners the option to stay with the traditional security deposit or accept the security deposit insurance. I commend them for this and I encourage all owners to list their properties with them.

Owners don't like the SDPP. Tenants don't like the SDPP. Who likes the SDPP?

Just follow the money... this is the last sentence from paragraph 16 of a RE/MAX lease:
Agency also receives compensation from CSA's SDPP, and Travel Insurance Programs.