Which travel insurance company insures DVC rental points?

[Majesty1919]

If I rent points for my next vacation and I have to cancel or an error on the owners part is made which results in my not getting a room, will travel guard gold cover that? My concern is that I'll pay someone to rent their points, something goes wrong and the insurance is not going to cover it because it is from a person and not an establishment.

 

[lost*in*cyberspace]

It's hard to say; your question is confusing. Why would it be cancelled? Your best bet is to call TravelGuard and give them the specifics.

 

[Majesty1919]

Scenario: I don't have a room because I rented points, received a confirmation. Show up and and Disney says, "We don't have you in the system." I need to find alternate accommodations.

The point is to find an insurer who covers rented points. Because even if we had to cancel due to weather, I'd be out of luck.

 

[ajwolfe]

It's a good question. One of the main reasons I've always steered away from renting points.

 

[Majesty1919]

I called Insure your trip dot com who recommended travel guard gold for my trip and the rep said that is NOT covered. So now back to the rereading the stickie provided to newbie renters and doing more homework.

I responded to someone's post about points. What I want is available and owner is ready to call and book the room. I checked that they had a deed and they do. I then requested for us to exchange names and phone numbers, a written agreement, and references. I never heard back. Now I don't know if they just think it unnecessary, which is probably the case, but you just never know. I fought my impulsivity and erred on the side of caution. But here I wait hoping that that room doesn't get scooped up.

 

[jerseygal]

I do not believe that Travelguard covers any DVC "points" situations. I have purchased various Travelguard policies before for non DVC trips and from memory, your situation described above for "rented points" would not be a "covered reason" for either cancellation or interruption. DVC owners can purchase Travelex to cover points, but it is my understanding that Travelex would only cover owners when they occupy the premises and anyone on their reservation who is staying with them on that particular reservation.
Doesn't hurt though to call Travelguard and inquire if any of their product would fit your situation.

 

[Pesky]

I would call Travelguard and ask. I did purchase trip insurance which would include all costs for whatever reason for cancellation (as both DH's and my work can interfere at times) and verified it would cover DVC point rental costs. I would imagine that cancellation due to lost reservation would refund my money but probably wouldn't pay the difference between the point rental cost and the hotel cost. I can't remember who I used off hand but know it wasn't travelguard.

 

[Majesty1919]

I would call Travelguard and ask. I did purchase trip insurance which would include all costs for whatever reason for cancellation (as both DH's and my work can interfere at times) and verified it would cover DVC point rental costs. I would imagine that cancellation due to lost reservation would refund my money but probably wouldn't pay the difference between the point rental cost and the hotel cost. I can't remember who I used off hand but know it wasn't travelguard.

Thanks. I did call Travelguard and they won't do it. I guess I'll keep looking.

 

[SharonZ]

Are you renting points from an individual or a Company?

 

[Majesty1919]

I'm considering both. There is a point broker who acts as an intermediary between owners and renters.

If someone knows of a po who would insure rented points, let me know. Otherwise, I'm moving forward and have to consider it a potential risk.

 

[Shelly F - Ohio]

Insurance only covers the owner of the points not a renter since technically DVC owners are not suppose to rent out their points.

 

[Majesty1919]

Insurance only covers the owner of the points not a renter since technically DVC owners are not suppose to rent out their points.

I see. Thanks for chiming in.

 

[Marionnette]

I'm considering both. There is a company who acts as an intermediary between owners and renters.

If someone knows of a company who would insure rented points, let me know. Otherwise, I'm moving forward and have to consider it a potential risk.

Check the FAQs for the major DVC rental companies. Some will guarantee that you will not lose your money of something happens and your reservation disappears. I don't think that any will make alternative arrangements for you if you show up and your reservation is gone.

There was a discussion on the DVC boards a few months ago about an issue that arose when DVC cancelled reservations which had been made by a member on the behalf of two different renters for HTG resorts during F&W this fall. Once those reservations were canceled, the rooms were released for other DVC members to book and were most likely given to those who had added their names to a waitlist for those dates at the specific resort.

The arrangements had been done through an agency which offered to make a refund to the affected renters or to make a new reservation in a larger villa at a less desirable resort but for more money. That's as far as the middleman's guarantee will go. They will not arrange for more expensive accommodations at their own expense. They will refund your money if something happens to the reservation that you paid for. Unlike a TA, they will not make new reservations for you if you show up at your resort and your reservation has disappeared.

Unfortunately, this is the risk that you take when you are renting points. The control of the reservation is always in the hands of the DVC owner. There are a number of factors that could have caused the reservations to be canceled in the above case. In the end, the renters got their money back from the middleman and had to make other arrangements on their own. Fortunately, the cancellation took place far enough in advance for them to be able to do so.

 

[Majesty1919]

Marrionnette!!!!! I can always count on you for solid advice. Thank you. I think I had just read some comments on the referenced thread. I'm still deciding on what to do for February. At least I can be assured that I'd get my money back if I use a broker. That does account for something. And yes, it is good that they do have a little time to take their refund and have a plan B. At the end of the day, a renter and broker know almost nothing about the other and we both just want a mutually beneficially arrangement.

 

[SuzanneSLO]

-- snip--

Unfortunately, this is the risk that you take when you are renting points. The control of the reservation is always in the hands of the DVC owner. There are a number of factors that could have caused the reservations to be canceled in the above case. In the end, the renters got their money back from the middleman and had to make other arrangements on their own. Fortunately, the cancellation took place far enough in advance for them to be able to do so.

There are travel insurance companies that cover private vacation rentals, which is what DVC points rentals are. There must be a written contract and it must be clear that the payment is nonrefundable.

However, unless you get "cancel for any reason", most policies would not cover a default by a private supplier. Usually such coverage is limited to payments made to big companies unlikely to go out of business.

But even with travel insurance that covers supplier default, all you would get back is the amount paid. It would still be up to you to find alternative accommodations at the last minute at a price you could afford. -- Suzanne