I have a big trip coming up and most of my lodging spots offered a discount if you pay in full with no option for refund. I use my Chase Sapphire card which offers some travel protection. I did a mix this trip. Some prepaid and others pay when I arrive. If the difference was significant I paid ahead. I’m thinking with the exchange rate I’m ahead by having already paid.
With a short term rental I look at what the cancellation policy is. We go to one area where they charge 50% upfront and it’s non refundable. We don’t book that 2nd house unless we are sure our kids are coming.