So why do they need renters insurance?

Those of you that know me or have been to one of my workshops have heard me talk about emergency preparedness. On occasion we as property managers are faced with the many types of challenges related to the topic. I have instructed companies and associations on how to prepare for them and presented to hundreds of managers all over the country. This past week the Northeast was dealt an unforgiving hand with Hurricane Sandy, and I personally had to deal with a fire a my community. These events emphasize the importance of being prepared and expecting the unexpected.

True story!
So I just get off of work and it's 6:19 PM. My cell phone rings and on the caller ID it's the company that monitors our alarms...not a good sign! Now we have had issues on occasion with ground faults related to the alarms, but there had been no storms or anything to lead me to believe it could be that. The person says, we have a fire trouble signal in Building 3. I ask, is it a trouble alert or fire? Then I hear that four letter word we never want to hear, "fire." Ok Larry, take a breath and think...rule number one!

After arriving I did all the things I teach others to do, and wouldn't you know it I even beat the fire department. Check the apartment with the fire and assess the status, check. Fire out by the sprinkler system but now water is flooding the apartment. Wouldn't you know, it's a third floor apartment and water never travels uphill. Check surrounding apartments to get residents out, check. Call the water extraction company, check. Call the sprinkler company as the system will have to be inspected and tested before residents can re-enter the building, check. Call the on call service technician, check. Check the status of the apartments downstairs, check. Provide comfort to the residents who were involved, check. Begin efforts to protect the asset and insure cleanup is started, check.

Luckily there was more water damage then fire damage, if that is luck. Luckily we require our residents to maintain renters insurance. If you have ever witnessed sixteen families wondering around your office like zombies because they have just lost everything they own, have no where to go, and don't know where to begin the process of recovery you understand what I am talking about. Unfortunately I have had to experience this type of event far too many times.

The next time one of your residents asks, "Why do I need renters insurance?" ask them the following. Can you guarantee you or your neighbors will not have an incident that could put you in a financial position where you have to replace all the contents of your apartment? Accidents can happen and it does not have to be your fault where you are put into a position that everything you own could be lost. What if you put a pot on the stove and leave it for even a few minutes and it catches fire? Who will be responsible financially for the damage?

Insurance means peace of mind both mentally and financially. We resisted when we started charging our residents for water and said they would leave, and they didn't. We resisted when we started charging for trash and said they would leave, and they didn't. We resisted when we started requiring renters insurance and said they'll choose somewhere else, but they choose your community. Renters insurance should not be a choice or an option it should be a requirement at all communities. Look at what is happening with the Northeast and imagine the thousands of renters impacted by potential loss. Hopefully all of them have insurance, however, we know many of them do not.

For other posts visit my blog at www.multifamilysuccess.blogspot.com

I tell my renters insurance story to every resident at move in.

We had a couple living here, they were married a few months after moving in. Immediately after their wedding, they came home and stashed all the wedding gifts on the kitchen counters, table, and floor. Then they left for their honeymoon. Soon after they left, the drain pipe in the kitchen of the unit above broke, so all the gray water drained into the unit below. Since no one was there, we had no idea. Two weeks later, upon returning from their honeymoon, they discovered that ALL of their (irreplaceable) wedding gifts were completely ruined.

Of course they were very upset and wanted us to reimburse them for their loss, but per the rental agreement, we were not able to.

Sad, and true.

PS- this is my costume today. If you look closely, you'll notice the box says "RENTERS insurance"