STR Damage Waiver Revenue Calculator

Damage waivers are ancillary STR revenue + risk protection vs traditional deposits.

Nights rented / year

Waiver fee / stay

Avg stay length

Claims / year

Avg claim cost

Waiver insurance cost

Net waiver program profit

$725

Gross waiver revenue

$2,475

Loss ratio

0.71%

How the math works

Stays = nights / avg stay. Revenue = stays × fee. Net = revenue − claims − insurance.

220/4 = 55 stays × $45 = $2,475. − (6 × $225) − $400 = $725 net. Loss ratio 71%.

How to Use

Enter nights rented annually.
Enter damage waiver fee per stay.
Enter average stay length.
Enter claims per year count.
Enter average claim cost.
Enter insurance cost.
Read net profit from waiver program.

Frequently Asked Questions

Why damage waiver vs deposit?

Traditional deposit: $500-2,000 hold on guest card, refunded post-checkout. Friction: guests hate holds, reduces booking conversion 10-15%. Damage waiver: guest pays small non-refundable fee ($25-75 per stay) that covers incidental damage up to limit ($500-3,000). Host keeps fee + claims above limit go to insurance. Industry shift toward waivers (Vacasa, Evolve default to waivers).

Waiver fee pricing?

Sweet spot: $25-50 per stay (1-3% of reservation total). Airbnb AirCover: free to host, but limited claim amount. Paid waivers: Safely, Rental Guardian, Waivo — 2-5% of reservation as fee charged to guest, guaranteed claim coverage. Some hosts self-insure, keep full fee: $25 × 150 stays = $3,750/yr pure revenue. Claims rarely exceed $500/stay actual.

Claim frequency?

Low-end STR (well-screened guests, mid-range pricing): 2-5% of stays have claims. Higher-end luxury: 3-8% (more valuable items to damage). Event rentals (bachelor parties, wedding blocks): 10-20%. Average claim size: $150-500. Major claims ($1,000+): 0.5-2% of stays. Platform-level loss ratios: AirCover pays ~50% of claims submitted, partial on 30%, denies 20%.

Insurance considerations?

Waiver fee is NOT a substitute for STR property insurance. Standalone STR insurance: $800-3,000/year depending on coverage. Waiver covers incidental guest damage; insurance covers major events (fire, theft, personal injury liability). Top STR insurance providers: Proper Insurance, Slice, Comet, CBIZ. Umbrella for multi-property hosts ($1M-5M limit): $500-2,000/year add'l.