November 4th, 2015
The Importance of Mandatory Renters Insurance
Only 43 percent of renters purchase insurance to cover their belongings and the unit in event of fire, smoke, water and explosion. This number includes residents in communities that have a mandatory renter’s insurance program.
Property managers have pretty big responsibility to residents to make sure an asset is fully covered. When property managers maximize the compliance this shows future resident the offers and perks of the community. This will also save money. Commercial premiums can be lowered by raising deductibles, residents insurance pays for damages, and the property does not need to provide coverage with its own insurance or pay the deductible.
Although renters may sign up for insurance, property managers have seen an increase in cancellations. Properties can now protect their assets by acquiring property damage protection through “blanket coverage.” Coverage is an option to the existing renters insurance policies. The policy is designed to fill the gaps for the residents that has not met the required liability mandate in the lease. A management company is able “place” a property policy on the unit, in the name of the asset owner, and get coverage up to $100,000 for resident-cause damage that is caused by fire, smoke, explosion or water.
Although the property is billed monthly for the coverage, it’s important to be compliant.