What damages am I covered for?

As a lender, you're covered for any damages to your items happened during a rental apart from wear and tear and minor cosmetic damage.

Settling directly with a borrower

If your item has been damaged during a rental, the borrower is liable to reimburse you for the full cost of repairs or a replacement item if repairs are not feasible. It's normally best to settle this directly with them - this can save you both time and may prevent penalty fees for the borrower.

If you're not sure what a suitable compensation amount is for repairs, you may want to base it on a quote from a third-party repair company.

The Resolutions process

Tell us within 24 hours

If you suspect there has been any kind of damage to you item (regardless of whether the borrower is willing to settle directly) you'll need to notify the Fat Llama Customer Service team via Live Chat within 24 hours of the end of the rental period. 

We'll assign you a Resolutions Case Manager, who'll reach out to you within 1 working day.

Self - resolve

We ask that borrowers and lenders always try to resolve in good faith between themselves as it is often cheaper and quicker for all parties involved. 

At this stage, your Resolutions Case Manager will check in on the progress and be available to answer any questions.

The Resolutions Team will assess and mediate

If you and the borrower have been unable to reach a settlement within 48 hours of the damage case being reported, then you may choose to have the Resolutions Team to step in to formally mediate. We will always aim to be as fair as possible, to compensate our lenders for any damages to their items that the borrower caused and to protect borrowers from potential false claims. 

  • We'll ask you to provide a short written account of events, a description of the damage and supporting evidence (including timestamped photos/videos taken 24 hours before and 24 hours after). 
  • We may also ask you to arrange for a third-party repair company to provide a formal repair quote. 
  • We may require an itemised breakdown of the repair costs needed and the repair company's opinion of the likely cause of the damage (for example, user error (in which case the borrower would be liable) or a manufacturing fault (in which case the borrower would not be liable).

Using the collected evidence, the Resolutions Team will determine who is liable and for how much. The conclusion they make will be final.

Borrowers may be liable for penalty fees

If the Resolutions Centre determines the borrower to be liable to pay for the damage, they will issue the borrower with an invoice plus an additional 30% Fat Llama processing fee given they didn’t resolve with you directly. If for any reason the borrower is not able to pay for the full amount within a reasonable timeframe, Fat Llama will pay you for the repair costs and the borrower will then be liable to pay this amount back to Fat Llama.

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