What Makes the Most Successful Renters Insurance Program?
When unexpected events take place at your properties, your residents and assets are put at risk. Renters insurance can help, but not all policies are equal—and you don’t want to find out your coverage is insufficient after an incident occurs. It’s important for property management companies to implement the right solution beforehand to ensure full protection for all parties involved.
Here are four characteristics to look for when selecting a renters insurance provider:
1. Supports Cost Savings for Renters and Properties
Pricing is a common objection residents have to purchasing insurance policies, especially when many already view such policies as an unnecessary expense. In reality, the costs associated with an apartment fire, burglary or other occurrence can be devastating for both the resident and property when no protection is secured. The appropriate renters insurance provider will offer a range of affordable choices, with flexible deductible options to fit each budget. When residents are well-informed about renters insurance, and understand how it can protect them in situations that are beyond their control, many view it as an advantage. For many property management companies, offering renters insurance options has benefited their residents and supported their business.
“The response from our residents [to eRenterplan® Insurance] has been absolutely fabulous. They feel it’s an added service we are providing them because we care…” said Tom Beaton, Vice President of Property Management at The Dolben Company.
Uninsured renters are both a financial risk and a liability for apartment owners. By requiring residents to adopt renters insurance, properties can save thousands of dollars per year—in fact, properties that require renters insurance report an average of 45% lower expenses from resident-caused losses. Check out our whitepaper to learn more about the value of renters insurance for apartment owners.
2. Provides Safeguards to Ensure Compliance
Once you have implemented a mandatory renters insurance program, how can you ensure your residents keep their policies active? Some renters may claim to have a policy, when in fact it has been cancelled or was never purchased in the first place. Select an insurance provider that will notify both your property and residents if a policy has lapsed, been cancelled or is due to expire.
By choosing a provider that sends automated renters insurance email reminders on your behalf to residents at move-in and when they are out-of-compliance, you will help reduce the day-to-day workload of your staff by eliminating the need to keep up with individual policy holders. Staying on top of your residents’ policies helps to ensure maximum compliance and asset coverage, and access to online reporting options makes it easy for you to monitor policy changes.
3. Offers Maximum Protection and Coverage
While many renters insurance providers claim to offer full coverage, it’s important to read the fine print before you choose a solution. Oftentimes, common losses at apartment communities are excluded from an insurance policy, exposing you and your residents to serious risk. A great renters insurance provider provides liability coverage for damages caused by water, fire, smoke and explosions. It will also go a step further to cover personal belongings like furniture and protect multiple residents living in the same property.
Choose a renters insurance provider that offers programs designed with both residents and property management companies in mind. Property management companies should look for a provider that allows residents to purchase extra protections for things like involuntary unemployment and jewelry protection.
4. Shields Properties from Negligent Residents
A good provider will also enable property owners to supplement their mandatory program with an optional “overlay” to their existing renters insurance program. This helps to close the gap on units where residents have not met the minimum liability insurance requirements mandated in the lease. In such cases, property management companies may be able to simply place a property policy on the unit, issued in the name of the owner. This can, for example, provide up to $100,000 of coverage for resident-caused damage relating to the perils of fire, smoke, water, and explosion and coverage is typically triggered when damage is accidentally caused by the resident.
Ready to implement a solution that will help your company avoid costly damages and losses? Learn about how LeasingDesk® helps properties reduce costs and stay protected.
eRenterPlan and RenterProtection are offered by LeasingDesk Insurance Services, a licensed insurance agency operated by Multifamily Internet Ventures, LLC. CA Agency license # OD12126. This article provides a general description of policy coverage and is not a statement of contract or a contract offer. Coverage is subject to qualifying conditions and the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements.