Renters Insurance

Do your properties require that the residents purchase renters insurance? I am just wondering if this is becoming an industry norm or not. Our properties don't currently require it, but the apartment I was living at last did require it. Any input is appreciated. Thanks

Some companies do require it. Essex Property Trust is one that does. It's a smart move really. National average cost is like $13 a month and it protects a considerable amount. In fact, we have our insurance through American Family on our cars and we practically get our renters insurance free, which covers up to a half a million dollars in losses. I actually am very partial to them. My agent is really awesome and easy to work with!

The big benefits for your residents are that when their dishwasher overflows due to their negligence and floods the apartment below them and ruins a bunch of stuff, they aren't paying to replace their neighbor's stuff out of pocket. Also, it's nice to buy piece of mind at a low cost.

And it is so common place with many communities in the Seattle area that renters don't give you as many funny looks about requiring it as you might think. They tend to already have it for the most part and when you tell them it's less than a Netflix subscription through different companies, that's pretty easy to stomach.

A lot of communities work with an insurance company for referrals, as it can be a great source of ancillary income. Just make sure you pick a good company. If you're looking for something portfolio wide, I suggest making sure that the company you want will cover you in all states. American Family, for example, doesn't work in California, but they are here in Washington. If it's just for a regional portfolio, or even just for your property alone, then go with whomever gives you the best bid

Good Luck!

Our company doesn't require it, but judging by the number of incidents (i,e. flooding due to weather, backups, or appliance), accidental fires, etc. in the last year, I wish we did.

I agree with Heather on the insanely cheap cost factor. Most people, if unfamiliar with it, assume it's a cost comparable to their cars and when they see the actual monthly or quarterly dollar amount compared to what it could cost them to replace items, it's an easy decision.

Our specific market however, does not typically require. We "encourage". And then we include a clause in the lease denying liabilty.

From the property managment perspective, it also makes sense to know that the resident's peace of mind re: personal item loss isn't dependent upon you. The insurance agent does their job and cuts the check, we do our job and make whatever repairs are necessary... it streamlines the process, maintains clear roles, and the resident is returned to normal more quickly. We come out looking like champs because we haven't disappointed anyone's mis-expectations.

I think anymore it is becoming an industry norm. I suggest as much based on the fact that there was little resistance from prospects or residents when we put the requirement in place a little over a year ago. I had the same experience with a different company some five or six years ago. Well worth it IMO.