WEBVTT NOTE This file was generated by Descript 00:00:02.889 --> 00:00:06.080 Steve: Welcome to Keynotes, a podcast just for Costco homeowners. 00:00:06.529 --> 00:00:09.500 This is where we explore how to get the most out of your relationship with 00:00:09.500 --> 00:00:13.910 Costco, learn tips and tricks on how to make more income with your property, 00:00:14.330 --> 00:00:17.250 and learn a little bit about the short term rental industry along the way. 00:00:17.980 --> 00:00:21.629 I've been a vacationer since my twenties, and the team has finally let 00:00:21.629 --> 00:00:24.570 me have this podcast so I can share everything I've learned with you. 00:00:25.200 --> 00:00:26.419 I'm your host, Steve Schwab. 00:00:26.669 --> 00:00:27.669 And this is keynotes keynotes. 00:00:36.350 --> 00:00:39.800 I'm here today with John Slaughter from rental guardian, talking about 00:00:39.800 --> 00:00:41.100 the Costco protection program. 00:00:41.600 --> 00:00:42.109 Welcome, John. 00:00:42.609 --> 00:00:43.019 Hey, Steve. 00:00:43.019 --> 00:00:43.379 How are you? 00:00:43.899 --> 00:00:47.989 Pretty good, . So today we're talking about the Costco protection program and 00:00:47.989 --> 00:00:50.419 how it benefits the Costco homeowners. 00:00:50.489 --> 00:00:53.339 And I guess for the very first question, we should probably ask you. 00:00:53.929 --> 00:00:56.349 John, what is the Costco Protection Program? 00:00:56.669 --> 00:01:00.109 Speaker 2: The Costco Protection Program was custom built for Costco 00:01:00.109 --> 00:01:04.649 homeowners to protect them against the day to day damages and liabilities 00:01:04.649 --> 00:01:07.799 and risks that come from renting your home as a commercial business. 00:01:08.199 --> 00:01:12.209 Steve: And so, John, you gave us eight things that homeowners should know 00:01:12.219 --> 00:01:16.619 about when it comes to the Costco Protection Program, and I'm just going 00:01:16.619 --> 00:01:19.669 to go right down the list and ask you about each one, if that's okay. 00:01:19.729 --> 00:01:20.339 Sounds good. 00:01:21.274 --> 00:01:24.614 So for number one, can you explain how the buying power of Costco? 00:01:25.054 --> 00:01:27.074 was used to create this program for our homeowners? 00:01:27.274 --> 00:01:28.344 Speaker 2: Yeah, absolutely. 00:01:28.344 --> 00:01:32.924 So because Costco, uh, at the time we've created this program had just 00:01:32.924 --> 00:01:37.224 over 3, 000 units , um, we were able to aggregate everyone as a 00:01:37.224 --> 00:01:41.384 whole instead of underwriting each Costco franchisee individually. 00:01:41.674 --> 00:01:44.524 And so what we're able to do is drive down the pricing of the 00:01:44.524 --> 00:01:48.454 program to be able to deliver a world class program unlike any other. 00:01:48.454 --> 00:01:52.254 So But at the same time, whether a franchise had one property 00:01:52.284 --> 00:01:56.094 or 10, 000 properties, they all had access to the same coverage 00:01:56.094 --> 00:01:57.404 to deliver to their homeowners. 00:01:57.904 --> 00:02:00.314 Speaker: So, for number two, you put liability coverage. 00:02:00.824 --> 00:02:03.364 Speaker 2: Liability is such an important component of the program. 00:02:03.644 --> 00:02:07.634 And there's a million dollars of coverage for liability to protect against 00:02:07.644 --> 00:02:11.504 things that can occur when somebody gets injured and the guest claims 00:02:11.504 --> 00:02:14.504 that the homeowner and the property manager and everybody involved in the 00:02:14.504 --> 00:02:16.434 process was liable for their injuries. 00:02:16.754 --> 00:02:20.054 And so, with this program, it covers that up to a million dollars. 00:02:20.164 --> 00:02:23.724 Speaker: You know, I just, last week, got a call from a friend, not part of 00:02:23.744 --> 00:02:26.659 Costco, but you know, somebody in the industry, He had somebody fall down 00:02:26.659 --> 00:02:29.009 his stairs and they broke their back. 00:02:29.629 --> 00:02:33.279 And he had to call the homeowner and let them know. 00:02:33.299 --> 00:02:35.119 And so now the homeowner was concerned. 00:02:35.579 --> 00:02:37.189 He didn't know quite what to do next. 00:02:37.219 --> 00:02:39.139 I told him, you know, let's have a discussion. 00:02:39.139 --> 00:02:42.429 And we, we walked through the steps, but he didn't have this protection. 00:02:42.479 --> 00:02:42.859 And. 00:02:43.354 --> 00:02:47.884 As a homeowner, having that extra million dollars of liability 00:02:47.954 --> 00:02:49.424 is just a lot of peace of mind. 00:02:49.854 --> 00:02:50.954 Speaker 2: It really is. 00:02:50.954 --> 00:02:55.714 And whether a homeowner has their own liability coverage that will stand up 00:02:55.714 --> 00:03:00.104 in a commercial situation, or whether they have their own homeowner's policy, 00:03:00.404 --> 00:03:04.044 this will protect as a service from the time the guest checks in to the time the 00:03:04.044 --> 00:03:07.704 guest checks out up to a million dollars for those liability claims that come in. 00:03:07.994 --> 00:03:09.024 It's such a great product. 00:03:09.499 --> 00:03:13.309 Speaker: So you said that the third thing we need to know about the Costco 00:03:13.309 --> 00:03:16.399 protection program is structure coverage. 00:03:16.589 --> 00:03:19.589 Speaker 2: Yeah, you know, I'm sure homeowners when they're thinking 00:03:19.589 --> 00:03:23.529 about renting their home as a business, two things hit their mind. 00:03:23.529 --> 00:03:27.029 What happens if somebody gets hurt and what happens if somebody causes 00:03:27.029 --> 00:03:30.289 a fire or there's water flood or overflow or something of that nature. 00:03:30.649 --> 00:03:33.269 And the structure of the home is when a. 00:03:33.634 --> 00:03:37.774 Situation occurs where the damage is not just to an appliance, but 00:03:37.774 --> 00:03:40.504 to the structure of the home, meaning it's gotten into the studs. 00:03:40.504 --> 00:03:44.164 And so instead of just a stovetop fire, it's a full kitchen fire. 00:03:44.494 --> 00:03:50.644 And that is now not just a $2,000 claim, but it's a 25,000 or $250,000 claim. 00:03:50.764 --> 00:03:55.354 And so what this program brings to the table is $1 million of structure 00:03:55.624 --> 00:03:58.444 coverage to be able to protect the structure of the home against those 00:03:58.444 --> 00:03:59.734 types of risks that can occur. 00:04:00.694 --> 00:04:01.654 Speaker: It's so great to have. 00:04:02.264 --> 00:04:06.934 So for number four, you said of the things that homeowners need to know. 00:04:08.469 --> 00:04:11.969 Speaker 2: You know, the contents is sort of the day to day damages that can occur 00:04:11.989 --> 00:04:17.699 from a guest being on site and not being familiar with how to run the appliances 00:04:17.699 --> 00:04:21.429 or whether or not the TV is a swivel TV when they're trying to eat dinner at 00:04:21.429 --> 00:04:24.489 the table and they pull it off the wall accidentally and cause those damages. 00:04:24.859 --> 00:04:27.069 So think of it as anything that's inside the home. 00:04:27.139 --> 00:04:30.599 Um, traditionally found in a vacation rental or a short term rental that 00:04:30.599 --> 00:04:33.799 could be damaged, whether it was the floors, cracked tiles, as well as 00:04:33.799 --> 00:04:38.029 carpet stains, all the way up into the appliances, tables, chairs, TVs, 00:04:38.059 --> 00:04:39.919 lamps, refrigerators, stuff like that. 00:04:40.769 --> 00:04:44.129 Speaker: Here in Scottsdale, we just had an incident that the 00:04:44.139 --> 00:04:46.229 Costco Protection Program covered. 00:04:46.699 --> 00:04:52.389 It was for a leather couch, and there was a massive water damage 00:04:52.389 --> 00:04:54.779 on a leather couch, unrepairable. 00:04:55.259 --> 00:04:59.449 And the homeowner was really concerned like, Oh my gosh, I got a few 00:04:59.449 --> 00:05:01.859 thousand dollars for this rental, but now I'm going to pay a couple 00:05:01.859 --> 00:05:02.959 thousand dollars for this couch. 00:05:02.959 --> 00:05:06.769 This is obviously not a good business deal going on here, right? 00:05:07.299 --> 00:05:10.759 But our broker here was able to call Rental Guardian and get the 00:05:10.769 --> 00:05:12.969 Costco Protection Program started. 00:05:13.389 --> 00:05:16.719 And sure enough, the entire couch was covered 100%. 00:05:16.759 --> 00:05:17.919 The homeowner was so happy. 00:05:17.919 --> 00:05:18.529 Her name is Linda. 00:05:18.559 --> 00:05:19.919 She got a brand new couch. 00:05:20.319 --> 00:05:21.929 It's already in, hassle free. 00:05:22.334 --> 00:05:23.654 And she's already back to renting, 00:05:24.224 --> 00:05:26.904 Speaker 2: you know, that's a great situation that talks 00:05:26.904 --> 00:05:28.104 to the value of the program. 00:05:28.474 --> 00:05:32.014 The contents protection is up to 25, 000 of total coverage. 00:05:32.344 --> 00:05:34.914 There is a 5, 000 limit for any one item. 00:05:35.234 --> 00:05:37.384 You said she just renovated the home too. 00:05:37.384 --> 00:05:38.684 So it was like six months old. 00:05:39.054 --> 00:05:40.574 And now all of a sudden you're thinking you're gonna have to 00:05:40.574 --> 00:05:41.624 come out of pocket for that. 00:05:41.914 --> 00:05:44.494 And the property manager was able to file a claim. 00:05:44.804 --> 00:05:47.804 Get it reimbursed quickly and replace that sofa. 00:05:47.804 --> 00:05:50.594 I mean, it's just a value of the program and what it's meant to do, which is 00:05:50.614 --> 00:05:51.894 protect the contents of the unit. 00:05:52.074 --> 00:05:52.314 Speaker: Yeah. 00:05:52.899 --> 00:05:56.779 So for number five, we have bed bug coverage, 00:05:57.669 --> 00:05:58.579 Speaker 2: our favorite thing. 00:05:58.589 --> 00:06:01.749 Yes, you know, nobody likes to talk about bed bugs and they can 00:06:01.749 --> 00:06:04.929 certainly be a reputational risk with reviews and things of that nature. 00:06:05.259 --> 00:06:09.949 The cool thing about this program is that there's 15, 000 of bed bug protection. 00:06:09.949 --> 00:06:14.369 And what that does is it allows the Costco property manager to act quickly, 00:06:14.689 --> 00:06:18.349 get the exterminators out there and remove the bed bugs first and foremost. 00:06:18.854 --> 00:06:22.994 Also, put the guest up into another accommodation, and then, you 00:06:22.994 --> 00:06:25.444 know, get the exterminators out there, get rid of the bed bugs. 00:06:25.744 --> 00:06:29.044 Then they're going to replace the soft furnishings that were impacted, and 00:06:29.044 --> 00:06:33.284 then they're going to be able to, if the next rental is impacted, after 72 00:06:33.284 --> 00:06:36.714 hours and the home is still down, being treated for the bed bug situation, 00:06:37.014 --> 00:06:40.434 and not ready to rent again, then they can also start claiming lost revenue. 00:06:41.234 --> 00:06:42.174 Speaker: Such an important program. 00:06:42.174 --> 00:06:44.404 You know, we've had some bed bugs happen over the years. 00:06:44.859 --> 00:06:46.209 And it can be devastating. 00:06:46.819 --> 00:06:47.609 Speaker 2: It really can. 00:06:47.629 --> 00:06:47.899 Speaker: Yeah. 00:06:47.900 --> 00:06:50.479 By the way, are you itchy right now talking about bedbugs? 00:06:50.539 --> 00:06:50.719 You 00:06:50.719 --> 00:06:52.049 Speaker 2: know, I start to squirm a little bit. 00:06:52.059 --> 00:06:53.309 Did you see me squirming in my chair? 00:06:53.359 --> 00:06:55.669 Speaker: Yeah, I was, I felt like I needed to scratch my hair 00:06:55.669 --> 00:06:56.829 every time you said bedbugs. 00:06:57.209 --> 00:06:58.269 It's not good. 00:06:58.299 --> 00:06:59.279 It has a creepy feeling. 00:06:59.279 --> 00:06:59.579 Yeah. 00:06:59.969 --> 00:07:03.959 Do you know the number one way that bedbugs come into homes? 00:07:04.879 --> 00:07:08.989 Speaker 2: You know, I was going to, and I typically say that it's, uh, somebody 00:07:08.989 --> 00:07:12.679 stopped off at a hotel somewhere and they were brought to them in a suitcase. 00:07:12.769 --> 00:07:13.089 Speaker: Yeah. 00:07:13.364 --> 00:07:13.724 Speaker 2: Yeah. 00:07:14.034 --> 00:07:16.564 Speaker: Yeah, I mean they travel through suitcases and things like that, but the 00:07:16.564 --> 00:07:21.244 number one way that bed bugs come to our homes, to include vacation homes, 00:07:21.934 --> 00:07:22.184 Speaker 2: is 00:07:22.184 --> 00:07:22.394 Speaker: through 00:07:22.394 --> 00:07:23.354 Speaker 2: the grocery store. 00:07:23.554 --> 00:07:24.634 That boggles my mind. 00:07:24.674 --> 00:07:24.974 Speaker: Yeah. 00:07:25.014 --> 00:07:25.374 Fruit. 00:07:26.034 --> 00:07:26.694 Fruit. 00:07:26.704 --> 00:07:26.984 Yeah. 00:07:27.034 --> 00:07:30.224 The reason why bed bugs exploded again was because they changed 00:07:30.234 --> 00:07:32.344 the law about pesticides. 00:07:33.179 --> 00:07:37.109 And so they reemerged when they changed the laws. 00:07:37.119 --> 00:07:40.229 So that's why we have this bed bugs again, because growing 00:07:40.229 --> 00:07:41.899 up, I'd never seen it, but I 00:07:41.909 --> 00:07:43.649 Speaker 2: had never seen a bed bug myself either. 00:07:43.649 --> 00:07:44.239 Like a myth. 00:07:44.319 --> 00:07:44.719 Yeah. 00:07:44.749 --> 00:07:44.959 Yeah. 00:07:44.959 --> 00:07:45.289 Yeah. 00:07:45.489 --> 00:07:46.049 Are they real? 00:07:46.049 --> 00:07:46.729 Are they not real? 00:07:46.749 --> 00:07:47.099 Speaker: Yeah. 00:07:47.169 --> 00:07:47.639 Speaker 2: Trust me. 00:07:47.639 --> 00:07:48.819 If you get them, they're real. 00:07:48.839 --> 00:07:49.329 Oh man. 00:07:50.089 --> 00:07:53.429 Speaker: So for number six, I didn't quite understand what you meant by this. 00:07:53.639 --> 00:07:55.689 So I'm going to ask you to help explain it better. 00:07:56.169 --> 00:07:57.579 Secondary coverage. 00:07:58.359 --> 00:08:03.829 Speaker 2: So that pertains to if the homeowner has a commercial grade 00:08:03.869 --> 00:08:08.319 coverage already in place, then this program would back it up and be a 00:08:08.319 --> 00:08:13.009 secondary coverage to be able to provide additional coverage for if the limit 00:08:13.019 --> 00:08:17.369 was exhausted on the first coverage or there was a claim that was over the 00:08:17.369 --> 00:08:19.179 amount and this coverage would kick in. 00:08:19.659 --> 00:08:23.089 What's great about this program is, is that it can also act as a primary 00:08:23.409 --> 00:08:26.969 coverage if the homeowner keeps their traditional homeowner's policy. 00:08:27.369 --> 00:08:31.639 Of course, that typically would not cover commercial rental activities, but because 00:08:31.639 --> 00:08:36.139 this program is, is available through the Costco property manager, they are 00:08:36.139 --> 00:08:39.819 additionally insured as a homeowner and they can use this from the time the guest 00:08:39.819 --> 00:08:42.959 checks in to the time the guest checks out, which is when they need the coverage. 00:08:43.249 --> 00:08:43.849 Otherwise it's. 00:08:43.924 --> 00:08:47.964 It's the traditional homeowners policy would be in place for, you know, when 00:08:47.964 --> 00:08:50.414 they use it or whatever the case might be. 00:08:50.444 --> 00:08:54.174 But when the commercial rental is in there, check in, check out 00:08:54.294 --> 00:08:55.584 the right coverage is in place. 00:08:56.014 --> 00:08:56.964 Speaker: It's so important. 00:08:57.034 --> 00:08:59.574 You know, I can't tell you how many times I've always wondered, you know, 00:08:59.574 --> 00:09:01.624 will my insurance cover me on this? 00:09:01.664 --> 00:09:02.434 And a lot of. 00:09:02.629 --> 00:09:07.379 insurance policies for residential, even if you change it over to letting them know 00:09:07.379 --> 00:09:10.369 that this is a vacation rental, there's always that question in the back of your 00:09:10.369 --> 00:09:12.039 mind, how are they going to play this out? 00:09:12.089 --> 00:09:15.329 And it's fantastic to have this secondary coverage with a product 00:09:15.339 --> 00:09:19.639 that's specifically designed for the short term rental industry negotiated 00:09:19.639 --> 00:09:24.749 by Costco to have this coverage in case your own insurance company doesn't 00:09:24.749 --> 00:09:28.749 cover it, or the coverage is exhausted, or if it's something out of the norm 00:09:28.749 --> 00:09:32.454 that Your normal insurance company wouldn't know how or want to cover. 00:09:32.554 --> 00:09:36.624 Speaker 2: Yeah, that's such a great way to be able to talk about 00:09:36.624 --> 00:09:41.644 the program is, is that it was created specifically for this niche. 00:09:41.974 --> 00:09:45.614 And in that, it is something that is unlike anything else. 00:09:45.654 --> 00:09:51.469 It's not going to cover anything, but Guests checking in to a vacation or 00:09:51.469 --> 00:09:55.439 short term rental and from the time they check in to the time they check out the 00:09:55.439 --> 00:10:00.589 specific coverage that's needed to cover against the risks and the perils that can 00:10:00.589 --> 00:10:02.829 come from renting a home as a business. 00:10:03.109 --> 00:10:05.019 This is there to take care of that. 00:10:05.089 --> 00:10:07.899 Speaker: Yeah, there's only really a charge when guests are actually 00:10:07.909 --> 00:10:09.639 in the property, not in between. 00:10:09.669 --> 00:10:13.619 And that brings us up to number seven, that the. 00:10:14.129 --> 00:10:18.859 Policies are a per booking policy, and maybe you can explain what that means. 00:10:19.259 --> 00:10:23.049 Speaker 2: Sure, so traditional, either commercial coverage or something 00:10:23.049 --> 00:10:24.899 of that nature will be per year. 00:10:25.209 --> 00:10:30.349 And many times, if a homeowner has tried to go and buy a commercial coverage for 00:10:30.349 --> 00:10:34.659 specifically short term vacation rentals, they've seen how expensive it can be. 00:10:35.029 --> 00:10:38.749 I used to say three to four times, I was told that the most recent show 00:10:38.749 --> 00:10:43.454 that I was at In Boise, Idaho that somebody was quoted up to 10 times as 00:10:43.454 --> 00:10:47.214 much as they would normally pay for a traditional homeowners policy That's 00:10:47.214 --> 00:10:49.434 a lot of money and it's per year. 00:10:49.554 --> 00:10:56.339 And so you basically whether you rent your home 25 of the time or 30 or 50 or 00:10:56.339 --> 00:11:01.304 70 you're basically paying for an entire year With no break given for the time 00:11:01.304 --> 00:11:03.574 that it's not rented with our program. 00:11:03.644 --> 00:11:06.994 It's per booking So there's two things that are super important to know 00:11:07.034 --> 00:11:10.549 number one You You're only paying for the time that you're using it. 00:11:10.879 --> 00:11:15.249 And number two, it's not a million dollars in liability per year. 00:11:15.769 --> 00:11:20.939 It's a million dollars per booking, which means guest number one files a lawsuit. 00:11:20.989 --> 00:11:22.569 There's a million dollars to cover that. 00:11:22.599 --> 00:11:25.529 Guest number two causes a kitchen fire. 00:11:25.619 --> 00:11:26.999 There's a million dollars for that. 00:11:28.504 --> 00:11:32.074 are astronomical numbers when you think about it, because you go 00:11:32.084 --> 00:11:37.144 from say 1 million, 2 million, 3 million, maybe per year to a million 00:11:37.144 --> 00:11:38.644 per booking to cover those things. 00:11:38.974 --> 00:11:43.794 It just means that you have literally protection when you need it most and 00:11:43.794 --> 00:11:45.025 you're only paying for what you use. 00:11:45.224 --> 00:11:45.514 Speaker: Yeah. 00:11:45.914 --> 00:11:47.674 It's perfectly designed for what we're doing here. 00:11:47.794 --> 00:11:51.734 And I'm really proud to be offering this to our homeowners because it's 00:11:51.734 --> 00:11:55.524 important that if our homeowners are here to rent and earn income from 00:11:55.524 --> 00:11:58.714 this to minimize those liabilities that are coming towards them, right? 00:11:58.834 --> 00:12:03.394 Speaker 2: You don't know what you don't know until one comes along and those 00:12:03.394 --> 00:12:06.184 things can be very, very, very expensive. 00:12:06.834 --> 00:12:10.714 So a program like this serves that need and protects you when you need it most. 00:12:11.769 --> 00:12:15.919 Steve: John, our last one, number eight, exclusive to Costco. 00:12:16.659 --> 00:12:20.559 Speaker 2: So basically what that means is we only work with. 00:12:20.894 --> 00:12:22.524 professional property managers. 00:12:22.584 --> 00:12:27.084 And this program was created for Costco property managers to 00:12:27.084 --> 00:12:31.094 then be able to deliver to their homeowners as additionally insured. 00:12:31.324 --> 00:12:37.034 And what that means is that if a homeowner were to try to call us directly, we aren't 00:12:37.034 --> 00:12:40.784 able to work with them and there would not be a program available to them like this. 00:12:41.034 --> 00:12:45.034 So the value is, is that when you work with a Costco property manager, you 00:12:45.034 --> 00:12:47.024 get access to this amazing program. 00:12:47.344 --> 00:12:49.054 There's no paperwork to fill out. 00:12:49.084 --> 00:12:51.484 There's nothing that you need to do other than to say yes 00:12:51.484 --> 00:12:52.934 to a Costco property manager. 00:12:53.314 --> 00:12:55.224 And even this is something that we didn't cover. 00:12:55.564 --> 00:12:59.959 Let's say for instance, You're in a neighborhood or a town that needs a permit 00:13:00.289 --> 00:13:02.009 and you have to show liability coverage. 00:13:02.249 --> 00:13:05.959 We can also then, because of this program, provide that form to be able 00:13:05.959 --> 00:13:10.259 to send that into that entity to be able to get that permit taken care of. 00:13:10.269 --> 00:13:13.489 So because you work with Costco, you get access to this program 00:13:13.539 --> 00:13:15.469 and it's just second to none. 00:13:15.889 --> 00:13:16.839 Speaker: John, thanks so much for coming on. 00:13:16.839 --> 00:13:20.169 I really appreciate your time and I know our homeowners will appreciate it. 00:13:20.289 --> 00:13:21.699 You're always so much fun to talk to. 00:13:22.369 --> 00:13:23.079 Really enjoy it. 00:13:23.139 --> 00:13:23.779 Speaker 2: Appreciate that. 00:13:23.809 --> 00:13:24.329 Speaker: Thanks again. 00:13:24.409 --> 00:13:24.619 Speaker 2: Yeah. 00:13:24.619 --> 00:13:25.259 My pleasure.