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Damage Waiver ToS

If you offer damage waivers to your guests, you might want to share the terms of service. Here's our sample ToS:

Damage Waiver Terms of Service

Terms of service that governs the accidental damage waiver offered by [company_name] "The Operator".

This rental offers you "The Guest", an ability to purchase a Damage Waiver to protect you against accidental damage that might occur while you occupy the property for the intended purpose as defined by the house rules and is governed by the Rental Agreement the guest has signed.

This fee is taken in lieu of a larger refundable security deposit, and is non-refundable.

This fee offers The Guest, as well as The Operator of the property protection against accidental damages, up to the allotted amount specified by The Operator.

Please note that the ability to purchase this Accidental Damage Protection plan is only possible at the time of verification, prior to receiving the check-in instructions by The Operator. The payment for this fee must be completed using a major credit card that belongs to The Guest who owns the reservation with The Operator. A cash deposit cannot be accepted in lieu of this fee.

This protection plan is offered by The Operator, for the purpose of simplifying the claim process and to reduce the total chargeable security deposit charged upon occupying the rented space as defined by the usage agreement by The Operator.

The Damage Waiver Fee Plan is designed to cover unintentional damages to the rental unit interior that occur during The Guest's stay. The policy will pay a maximum benefit of the allotted amount specified by The Operator.

Any damages that exceed the allotted amount specified by The Operator will be charged to the guest directly. If during the stay at this property The Guest or those sharing the accommodation with The Guest cause any damage to real or personal property of the unit as a result of inadvertent acts or omissions, the Damage Waiver Fee Plan will reimburse The Operator for the cost of repair or replacement of such property up to a maximum benefit of the total amount specified by The Operator.

To ensure that you are not charged for any damages, you are responsible for reporting any accidental damages to The Operator prior to leaving the rented space, within a timely manner.

Coverage under this plan is not provided for loss or damages due to:

  • Intentional acts or gross negligence by The Guest and/or their guests*
  • Damage caused recklessly or wilfully and disregards the consequences to the Property including loss or damage by animals or pets*
  • Normal wear and tear of the real or personal property assigned to the Accommodation
  • Any damage that occurs if you are in violation of the standard usage agreement*
  • Loss, theft or damage to any personal effects of The Guest. Either owned or brought by*
  • Loss, theft or damage caused by any person other than The Guest or your traveling companions with whom you share the Accommodation reservation*
  • Any cause, if The Guest does not report the damage immediately to The Operator prior to checking out of the property*

*In the event of loss or damage to the Property caused by such acts or omissions by The Guest and/or their invitee's, The Guest will be entirely liable for such damages. Any of the aforementioned issues or damages may be debited from the credit card on file as submitted by The Guest to The Operator.

Administrative Procedures

All waivers of theft or damage will be administered by The Operator at the Property. Such staff will have the sole authority to determine the nature and extent of damages, necessary repairs and eligibility for the waiver of liability described herein. The Guest must report in writing any theft or damage to the Property or its contents to staff of The Operator by the time of check-out or any otherwise applicable damage waiver for such The Guest will be void. The Operator has ultimate administration authority. In the event of any dispute relating to this waiver The Operator may require such dispute be submitted to binding arbitration.

Terms of Coverage

The Accidental Damage Limited Waiver of Liability takes effect upon check-in or registration on the booked arrival date to the Property together with payment of the Waiver fee before check-in. The Waiver shall terminate upon normal checkout time or the departure of the The Guest, whichever occurs first.

Waiver Fees Are Not Refundable

IMPORTANT NOTE: Payments for the Accidental Damage Limited Waiver of Liability will not be accepted after the The Guest has entered the Property for the beginning of their stay.

Possible Terms:

The purpose of the damage waiver is to replace a high security deposit (i.e. the general deduction for your company, according to your insurance policy.) The cost of the damage waiver reflects the amount of damages it covers. Make sure to communicate this to your guests.

Possible terms could be as follows:

$10 damage waiver would cover up to $150 in damages.

$50 damage waiver would cover up to $500 in damages.

$89 damage waiver would cover up to $2,000 in damages.