How Three Industry Leaders Maximize Mandatory Renters Insurance Compliance
Three industry experts weigh in on how they keep mandatory renters insurance compliance as high as possible.
Just because it’s mandatory doesn’t mean your residents will maintain it.
That’s been the experience of many properties when it comes to renters insurance. At the recent Crittenden Multifamily West Conference, three industry leaders shared tips for maximizing resident compliance.
Keeping compliance high at move-in
1. Make it easy for residents
First, they said, make it easy for renters to enroll. Pinnacle’s Michael Henry mentioned onsite kiosks, with the preferred vendor website set as a favorite. “The leasing agent can walk the renter through the process right there on the spot,” he said.
2. Remove all obstacles
Lizza Castro of Prime Residential says Prime takes a similar approach to Pinnacle, and that some properties even offer a $20 concession in the form of a gift card to be used towards the first month’s rent, etc. since sometimes residents don’t bring bank or credit card information with them. “The goal is to eliminate all the obstacles to getting the insurance right then and there,” she said.
3. Educate residents
Castro added that Prime properties also impart to residents the importance of insurance in an ongoing way – for example, by designating October as “fire prevention month,” with educational activities that communicate the real risks, consequences, and costs of apartment fires. “Part of fire prevention training materials include pictures and news articles of past fires to help our residents understand just how detrimental a fire can be, and how important it is to have renters insurance.”
Reducing lapsed policies
The biggest problem with mandatory renters insurance is not making sure residents get it, which can be handled as a requirement for move-in. Rather, it’s that many residents let their renters insurance policy lapse, whether accidentally or on purpose. At the conference, the experts shared their advice on preventing this.
4. Incentivize the behavior you want to see
“Our leasing agents are given responsibility for their residents,” said Castro. “One of the components for commission is confirmation of renters insurance for each resident, and our community managers have a quarterly commission component tied to renters insurance participation.” From the outset, Prime reduces lapsing policies by requiring that policy terms match lease terms in length.
5. Alleviate the burden of compliance
Greystar’s director of resident insurance, Rebecca Daniels, talked about removing the burden of compliance from the communities and leasing staff. “My team takes on compliance oversight so the leasing agents don’t have to. We can provide residents with the compliance information they need and answer the hard questions the leasing agents may not be able too.”
The consensus was that with a little planning, keeping resident compliance up ceases to be the challenge it has been for so many properties.
(Image Source: Shutterstock)