Mandating renters insurance
Q: My lease requires that I buy renter’s insurance, or risk being in breach.
Of all renter’s policies drawn up, 30% are cancelled before the end of the lease agreement.Another benefit of partnering with a rental insurance provider is having the ability to leverage the referral partnership by way of lower rates for your tenants and first-hand guidance on coverage options.Over time, you will become more knowledgeable of the policy options and procedures, in turn, allowing you to easily translate this information to your tenants upon move-in or when filing a claim to recover damages.“(Residents) come to the leasing office, they offer you a declaration page from an insurance provider showing they meet the lease requirement, they move in, and two days later they call their insurance company and cancel,” says Jay Stoltz, Leasing Desk Insurance’s Director of Market Development. That very scenario is commonplace throughout our industry.” Maximizing compliance at your communities is the ultimate objective and may prove to offer perks from your commercial carrier.Properties can save in multiple ways when renters insurance participation is high, Stoltz says.The adoption of mandatory renters insurance into lease agreements has helped apartments better safeguard their assets and put responsibility on the resident.
Full compliance pays great dividends not only for the property, but also for residents.
Ultimately, they need to understand that without a policy in place, their personal belongings are at risk.
Policies will most likely go through your actual provider, but that doesn’t mean you can’t make it a smooth process.
I realize this doesn’t provide liability coverage, but that’s a risk I’m willing to take in lieu of paying $206 a year. You're also likely to run into this issue in other rental buildings, as more and more landlords require renters to take out policies in order to protect themselves from damage caused by tenants.
"Landlords are now requiring proof of coverage, largely because they don't want to be in the middle of water damage disputes between tenants," explains apartment insurance broker Jeff Schneider of Gotham Brokerage.
Finally, create an easy experience by guiding your renters through the adoption process.