Why it’s important to require multifamily renters insurance
For multifamily owners and operators, requiring renters insurance is one of the best ways to reduce your exposure to risk. In addition to attracting great residents and maximizing occupancy, multifamily property managers should always be looking for new ways to minimize risk as much as possible, and that includes having a plan in place to protect your residents, your properties, and your multifamily business.
In the event of an apartment fire, weather disaster, or other accident, many residents assume that their landlord is responsible for covering any damage to their personal belongings, which is not correct. Requiring multifamily renters insurance as part of the leasing process not only ensures coverage for each individual unit – it also brings peace of mind to the entire community.
Reduce risk and responsibility for property management
Any personal injuries that occur in a resident’s apartment may result in claims being filed against the landlord, which could require a court appearance for the property management company. Should an apartment fire spread to other units, your residents will require relocation, which would be covered by a renter’s own insurance policy. By requiring a renters insurance policy from day one, then both parties – the property owner and the resident – are protected from incidents like these and can focus on repairing the damage with support from a reliable insurance company.
Close the insurance gap
Requiring renters insurance can prevent serious financial trouble for the business. In the event of a disaster, multifamily property owners still have to pay a deductible in order for their insurance company to cover building repair costs. For example, if a resident accidentally starts a fire in their apartment, the resident’s rental insurance policy will cover the deductible, which can save multifamily properties a significant amount of money per claim.
A selling point for your community
Requiring renters insurance can go a long way in attracting the right tenants. Prospects often want to live in a community where risk is proactively managed, and if they know that there’s a system in place to ensure that each resident is protected, that can make them feel as though your properties are a safe and secure place to live. In addition to this level of prospect reassurance, requiring multifamily renters insurance can help you determine whether or not a prospect is likely to remain current with their rent payments. Renters insurance plans are usually inexpensive, and prospective tenants who aren’t willing to pay the low monthly premium for insurance may not be the most reliable in paying their rent.
How to require multifamily renters insurance for your property
How can a multifamily owner or operator actually require that of their renters? MRI Software now offers an integrated renters insurance compliance program as part of the MRI Living suite of residential solutions. Offering renters insurance via online portals gives MRI clients more options for creating a fully automated system that addresses the preferences and habits of modern renters, and a tightly integrated and intuitive insurance compliance program is crucial for property owners and managers to know their buildings are protected from any risk. Learn more about MRI Multifamily Insurance.
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Regency Multifamily is a private real estate investment and development firm founded in 1974. Today, Regency owns and manages 4,000 apartments throughout the Midwest. Business Challenge Regency Multifamily owns and operates 15 properties and more tha