Severe weather forced this Massachusetts family to cancel their Hawaiian Vrbo. Now they're out $12,000

A Massachusetts family was so excited to head on a vacation to Hawaii in March, booking a beautiful house through Vrbo to enjoy the trip. But just days before, Hawaii Governor Josh Green declared a state of emergency due to severe weather.

Steve Cavagnaro said the family decided to cancel the trip due to safety concerns and was easily able to receive a credit from their airline for another trip. 

They thought they would have the same experience with Vrbo. 

"Just realizing in a natural disaster type scenario, we would be protected from that. I had referenced what they call their 'extenuating circumstances policy.' They said they didn't activate the policy, which doesn't seem to make a lot of sense to me with a state of emergency," Steve said.

A "loosey goosey" policy 

The policy explains that natural disasters and abnormal weather events are covered. 

"For example, earthquakes, tsunamis, volcanic eruptions, landslides, tornadoes, flooding, wildfires, and other historically severe weather events...  Foreseeable weather disasters (such as cyclones and extreme winter storms) may be covered if they cause or coincide with another covered event..."

However, it clarifies that typhoons, tropical storms, cyclones, and hurricanes may not be covered for properties in Hawaii specifically from May to November. 

"Seasonal weather events that do not cause or coincide with another covered event: For example, hurricanes during Atlantic Coast hurricane season; tropical cyclones; winter storms in the Northern Hemisphere; where a covered event has occurred prior to a booking being made, but has subsequently increased in impact (for example, flooding that worsens). See table below for examples of seasonal weather events that would not be covered."

Edgar Dworsky with Consumer World said that the policy is kind of "loosey goosey" because it's up to the company's discretion. 

"So a consumer reading it, not paying attention, goes 'Oh look, I'm protected.' But they're really not protected because it really is at the discretion of the company and the host," he explained.

Steve told the I-Team he didn't buy insurance because he thought he was protected in cases of natural disaster and severe weather. 

"I'm a pretty big skeptic on travel insurance, too, because insurance companies also have a book of ways to say no," Steve said. 

The I-Team reached out to Vrbo to ask why the policy was not enacted and if the host would be willing to offer a credit to the family. The company said in a series of emails. 

"We carefully assess when and where to activate the Vrbo Extenuating Circumstances policy during times of severe weather… Since the Extenuating Circumstances Policy was not activated, the decision whether or not to allow additional flexibility is up to the host. Unfortunately, the host declined to offer a credit to Mr. Cavagnaro."

"Crummy way to run a business"

Platforms like Vrbo don't operate like large hotel chains; refunds and credits are usually up to the host. 

"There's such a thing as goodwill. They would generate so much goodwill if circumstances like this occurred and they did the right thing, protecting the consumer, giving them the money back, giving them a credit toward a future trip," Edgar explained.

Steve said they are now out around $12,000 on the rental, but Vrbo told the I-Team it would refund the family's $800 booking fee. 

"Vrbo makes it easy to find a house and a location, but they don't make it easy if something goes wrong," Steve said. "It's kind of a crummy way to run a business." 

The I-Team has reached out to the Vrbo host/property owner but has not heard back.