Insuretech Guardhog launches deposit cover for sharing economy
Guardhog, the pay-per-stay home-sharing insurance specialist, said it has come to the rescue of the burgeoning peer-to-peer accommodation sector by launching deposit cover in time for the peak summer period.
From £2 per stay, hosts can buy a £1,000 deposit for the stay reducing the hassle for those renting out their homes by removing the need for a chunky up-front payment from short-stay guests.
In a world where crypto-currencies are on the rise this is a neat 21st century technology and blockchain driven alternative to the current outdated deposit-holding system, the firm said.
Making money from your home is a ‘commercial activity’ not normally covered by home insurance. Guardhog said it has provided Host Cover for over 500,000 nights and paid out hundreds of thousands of pounds as hosts protect themselves from mishaps such as malicious or accidental damage or theft since the company was founded.
Now, as the company expands its offering, the insurance challenger has listened to its customers who said that managing a deposit was causing real headaches – before, during and after they’d had guests to stay.
Until now, resolving red wine spills on upholstery, coffee rings on antiques or smashed crockery and TVs have been laden with frustrations and arguments, it said.
“Exacerbated hosts often find guests sheepishly ‘hid’ the evidence of mishaps before they’d check out as they did not wish to lose their deposit”, Guardhog said.
As a result, the provider, which works with about 300 sharing economy partners including Airbnb, Home Exchange, and TrustedHousesitters, believes that the new product can only make the entire process more efficient and transparent for both parties.
“Taking a meaningful deposit from a guest is important but hard”, said Will Parry, COO at Altido a London based prop-tech platform.
“The regulations around handling a traditional deposit are complicated, involve payment processing fees and guests can be put off by forking out a lump sum which dwarves the cost of their stay per night, while resolving host / guest disagreements quickly gets messy and petty.
“This new approach from Guardhog has completely revolutionised how Altido approaches taking deposits for the benefit of us and our users.”
Humphrey Bowles, co-founder of Guardhog said: ‘We’re determined to help hosts be in control, take bookings efficiently and for guests to feel they can easily put up their hands up to fess up when an accident has happened.
“We believe this new approach to deposits will help speed things up on both sides as well as allow a much more open, transparent and hassle-free transaction for all involved.”
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