Outer Banks Trip cancellation insurance...worth it?
 

Hello. Great board and I am hoping to get some opinions.

Family of four couples and four kids will be staying in Nags Head, NC 8/7 for a week. This will be our first year in OBX. Jersey born and bred we have normally spent summers at the Jersey shore. Chose Nags Head over Duck and Corolla because with our young kids we thought Nags Head would have more to do and more centrally located.

We have rented a six BR Oceanfront house through Joseph Lamb Realty. Total rent with taxes, fees, and linens/towels ($190 extra) is around $7800 or about $1950 per couple. The realtor is offering trip cancellation insurance for $492. We were originally going to rent the end of June and would not have purchased the insurance but do you recommend the insurance for the beginning of August? I thought hurricanes in NC were more prevelant late August/September but I guess you can never predict them.

Bottom line is it worth buying extra insurance? I have also heard that I could purchase this insurance through my homeowners policy. Probably for a lot less though never asked.

Any opinions?

Thanks in advance,

Marc

Lots of questions about cancellations. Under what circumstances would the cancellation insurance kick in? (eg If a hurricane might be coming, can you decide not to go; Does there have to be an evacuation order?) We once cancelled a week in a hotel when there was a huge and devastating wildfire was threatening the town. We had company joining us from afar and didn't want to risk a ruined vacation. We lost our money. We did not have trip insurance, but I doubt it would have covered us for panicking. The town didn't burn, after all....

What are the cancellation policies for the house?

Do you have arrangements concerning the financial responsibilities of each family should any family decide to cancel?

Just wondering. We always get uneasy when we've had to plunk down full costs in advance, but sometimes you have to do it. This is a huge chunk, though, and I'd be seriously considering insurance, too, if I were you.

We purchased insurance for our usual stay in Hatteras when Hurricane Isabel paid her visit. The requirement for a refund was that there be a mandatory evacuation order in effect.

This is generally not a problem since in Dare (Nags Head, Hatteras, etc.) and Hyde (Ocracoke) County you will not be allowed to remain unless you are a permanent resident or own the property.

We got just about everything back from the insurance company (13 nights worth of payment) so I am a firm believer in trip insurance.

This is the first time we've ever had to evacuate and hopefully the last. I'd read the fine print before purchasing any policy.

I've had to evacuate The Outer Banks during Hurricane Dennis a few years back. I also had to hunker down during Hurricane Charlie in Orlando last August. Get Insurance, but make sure it covers cancellation AND trip interruption. Conde Nast Magazine just had an article about the types of insurance coverages available. It's worth it to read up on coverages before you buy. There's a lot of fine print.

If I were dropping $2K for a week on a sand bar in hurricane season I'd spring for another $100 for insurance.

Is it worth it? Only if you end up needing it. But isn't that the nature of insurance?

Ask Lamb Realty to send you a copy of the insurance policy if they haven't already. While there's a lot of fine print, there should be a fairly clear list of what is and what isn't included.

OBX girl said it best. We sprang for it, and we don't generally SPRING for much of anything. I'd rather kick myself over $100 than $2,000. Also, I've read August is dicey season.

What's an extra $100? The price of dinner out for some of you?

BTW, we went last July and had a blast.

It was for us. We had a mandatory evacuation order for Hurricane Isabel on day 2 of our vacation. We got everything back.

I'd definitely consider another source than the realtor for cancellation insurance.
The rate sounds much higher than I've paid for similar insurance for Europe or Russia which also included medical insurance.

Check with other companies, like TravelGuard to see if they cover such rentals - likely to be cheaper and might cover for same fee other situations.

Yes. Buy the trip insurance either from the real estate agency or another company.

I like TravelImpressions. You can cancel last minute for just about anything.

One last thing, if there is a mandatory evacuation, even if you don't have insurance, by law the company must give you your money back. Since it is against the law for you to be there during a mandatory evacuation, it is against the law for the real estate agency to charge you for services they are unable to provide.

Both the real estate agency and the homeowner are insured for loss of revenue.

>One last thing, if there is a mandatory evacuation, even if you don't have insurance, by law the company must give you your money back.<


GoT, Are you certain this is true in North Carolina?

I am mistaken. Evidently, when you sign a contract with the rental agency, it outlines the hurricane evacuation issue and doesn't provide refunds.

Kitty Hawk Rentals, does provide pro-rated refund in return for the renters doing minor tasks before they evacuate such as secure lawn and pool furniture, trashcans, etc.

What a crock. There is no way I'd rent with someone who doesn't provide a refund and after researching this, I shouldn't be expected to purchase travel insurance.

You shouldn't have to pay an extra $500 on top of a $7800 rental fee.

I know with my family's vacation rentals, we have provided refunds for the evacuees and we can then recoup from our insurance company. Obviously, we don't claim it on our insurance because our premiums would increase.

If Kitty Hawk rentals does this, they're in the very small minority. Most OBX realtors state upfront that there are no refunds but offer "trip interruption insurance." Typically the cost is a percentage of the rental value (plus some other bogus crap) and is generally in the range of $50-$55 a week per $1000 rental fee. That makes gores95 $492 insurance sorta within range of my experience.

Crock? You bet. But it's standard practice.

We've rented several times in the obx area, for family reunions. You will love it! Always purchase insurance with a group of this size, no matter when you're going, and make sure it covers illness/death. We sent a list of all those staying at the property (in advance, even including unborn children, five months beforehand). Just imagine if one of the families involved had a death...nobody would want to go anyway. Worth $500 (divided by four couples it's not so bad).

P.S. I'd also save $190 by bringing my own linens. I've found that the realtor supplied linens are stingy - like one bath towel per person, and maybe two dish towels (we had to call and order more but they weren't happy about that). And if you're driving to your destination (as our Jerseyite family members do), what's one more bag? One more tip: if you plan to cook much, bring a couple good knives and a decent teflon frypan. Those in the gorgeous beachfront mansions are direct from Joe's Bargain Basement, and ready for the trash after previous use.

I would definitely get the trip insurance. The outerbanks suffer many hurricanes. It is worth it like the above poster says. And if you are driving, I would bring my own sheets and towels, etc.. Plus, coming from Jersey, I would pack a cooler with some great jersey food!!! Living in the south, I miss some of the food. Bring the taylor ham and some good steaks and cold cuts...mmmmmm