What is it and how does it work?
TERN Financial offers property managers a Damage Protection Policy that you can include in all your bookings to ensure your property is comprehensively covered against any potential damage caused by guests.
Property managers can choose how to work with this product, as there are a variety of different options:
Full transparency: You can include the policy in your bookings as an “extra” in your direct bookings and in some of your bookings on portals/OTAs (depending on which ones recognize these extras). You can also include it in the description of your properties on portals/OTAs and inform guests that by booking a certain property, they are also paying for a damage protection policy.
Hide the cost from the guest: You can do this in different ways detailed below.
Cover the cost yourself.
Pass the cost to the owner: Most owners will value the product and this can even help avoid friction over damage claims in the future.
What are the benefits of the TERN Financial Damage Protection Policy?
A policy designed from direct research with Property Managers, for Property Managers.
100% coverage up to €20,000 per booking and €7,500 per item.
Frictionless interactions with guests when damage occurs (they do not participate in the process).
Reduce issues with owners over damages.
Increase guest loyalty by avoiding deposit holds, claims, or unexpected charges.
Higher turnover and revenue by quickly managing damages.
Pre-approved rating: TERN Financial automatically covers all PMs with Avantio.
Opportunity to generate income by applying a mark-up to the policy cost.
How can I pass the cost to the guest and generate income?
You can combine different strategies to find the perfect formula.
🌍 For direct/web bookings:
Create an “extra” in your VRMS account.
Request a general price increase from Avantio.
Create a “supplement” in your occupancy rules.
Include it within an existing extra (e.g., cleaning fee).
🏠 For bookings on portals/OTAs:
Add a “price increase” with ChannelPro.
Increase the price of a synchronized extra (e.g., cleaning fee).
Create a new “extra” in VRMS and request Avantio to activate it.
Use a universal supplement (check compatibility).
Useful resources:
Is this policy for me?
Yes, if you want:
100% protection
Higher turnover after damages
Frictionless relationships with owners and guests
Quick repairs with available funds
Additional income