Renters insurance is becoming more and more popular—and mandating it is quickly becoming the standard, but is it worth it? Damage is inevitable, and we all know that it’s better for your property—and your bottom line—when your residents have insurance. But how much better is it?
Every Uninsured Unit is a Potential Time Bomb:
Nearly half of properties will suffer a small loss (less than $25,000) every year, and eight percent of properties will suffer a large loss; the average large loss is $77,250. If your resident is uninsured, your property will bear much of the burden, or get tangled in a long legal battle.
Renters Insurance Lowers Your Risk:
Aside from mitigating any resident-caused damage, mandating renters insurance can reduce your property’s insurance premiums. And the renters insurance can apply toward your property’s insurance deductible. Also, insured residents are more likely to be able to continue to rent from you after a loss event, less likely to need financial assistance, and less likely to file a nuisance claim against the property owner.
No Downside:
Studies have shown that mandating renters insurance has no negative impact on occupancy. In other words, you have no reason not to mandate it, which is why it has become a best practice. Sixty-six percent of the NMHC Top 50 are now mandating renters insurance.
For more information about how renters insurance can benefit your property, please visit www.propertysolutions.com/residentinsure, or contact your account manager.
