by Brandon Tobman

Buzzwords can get tossed around multifamily without a true understanding of what they mean, different interpretations or what benefits a product or service may offer. However, certain technology-centric terms, like PropTech, took hold and became an industry staple. 

PropTech provides countless benefits and allows operators the opportunity to increase operational efficiencies across the board. From leasing and sales strategies to enhancing resident satisfaction and retention, technology has guided the industry through numerous changes and helped operators adapt in a digital-centric world. While technology has long been intertwined with smart home features and property management, other industry sectors, such as insurance providers, have taken notice. 

Insurance technology, or InsurTech, is quickly becoming the next tech-powered solution assisting apartment operators with robust risk mitigation strategies for both residents and themselves. The most notable way InsurTech has revolutionized the industry is by ensuring residents adequately insure their personal belongings and removing the risks to operators associated with having uninsured residents living in their communities. And residents without renters insurance happens more often than we think. 

When considering what renters insurance actually covers and protects, like loss or damage to belongings and property and personal liability for injuries, that number should be alarming to operators. By not requiring residents to have renters insurance and monitoring the validity of their policies throughout their entire stay, operators open themselves up to tremendous risks. 

For operators, failing to enforce renters insurance policies gives way to the possibility of lawsuits, being held responsible for relocation expenses or paying out property damage claims that result in increased insurance premiums. Additionally, lack of renters insurance  causes them to lose out on potential residents who own pets because without residents having adequate coverage, a number of operators feel they have to charge unreasonable pet fees to offset the potential costs derived from pet related damage. The implementation of an InsurTech provider doesn’t just minimize these risks for operators, it delivers fantastic benefits to everybody involved.

Some residents may ignore the risks because they wish to save a few dollars while some find the search for an affordable insurance plan to be a daunting task. Most of the time, they simply forget to renew their policy when the time comes. Whatever the reason, InsurTech alters the landscape of renters insurance for the better.

InsurTech services eliminate any excuse that residents may have for failing to hold a renters insurance policy by not only monitoring the policies of individuals living in an apartment community, but also by notifying residents they need a policy and facilitating a way for residents to easily locate and purchase a policy that works best for them and fits their budget.

When operators supply residents a way in which they can find and buy an insurance policy in a matter of minutes, and then monitor that for them, the resident experience is tremendously improved and operators are equipped with a much more robust risk mitigation strategy. 

Beyond amplifying risk mitigation tactics for operators, the revenue gained from a broader resident pool and  increased occupancy rates is a massive benefit in and of itself. InsurTech not only gives operators peace of mind and makes for a greater resident experience, it adds to the overall value of  a property and increases NOI.