by Brandon Tobman
Although renters insurance is a standard requirement to live in most apartment communities, operators still find an astounding number of residents live without it. However, this isn’t just a resident-specific problem. If a resident lacks renters insurance, operators are the ones who must shoulder the liability should something happen that requires a claim.
While many renters do comply with insurance requirements, a sizable number of renters either find ways to circumnavigate the system and avoid having to purchase it, cancel it upon move in, choose to let it lapse or forget to renew the policy – and it happens more than operators think. For instance, one of our clients thought a community’s compliance was at 100% and our audit revealed the community was actually at 30% compliance. This story is familiar across the nation.
To combat this liability challenge, operators have started tapping new insurance technologies to mitigate risk and provide comprehensive tracking methods to know exactly when policies may be canceled and make sure their communities are 100% compliant. Although not every instance of a resident falling out of compliance is a deliberate attempt to avoid paying for insurance, it is important for operators to have a clear, real-time picture of policies within a community.
Traditionally, operators have relied on onsite teams to check each new resident’s declaration of insurance and then perform random audits to monitor policies. But this is extremely time-consuming on onsite teams, especially when onsite teams are operating with less people and more tasks. Many onsite associates simply don’t have the bandwidth to confirm and keep track of who or who doesn’t have renters insurance. It’s easy for renters without insurance to slip through the cracks, and it becomes a liability for the operator.
Operators recognize consistent insurance tracking isn’t feasible for modern onsite teams and have looked to partnerships with third-party insurance technology companies. InsurTech companies are an intermediate party that takes on the task of consistently monitoring each and every resident’s renters insurance policy for validity. Onsite teams won’t be burdened with tracking insurance, and operators can have the peace of mind that all renters insurance policies are being reviewed. Should a policy get canceled or lapse, the operator will immediately know. Once our client realized a community’s compliance was at 30%, our insurance tracking helped boost community to 70% compliance.
In addition to overseeing each resident’s policy throughout their entire stay at a community, InsurTech platforms also offer affordable options from multiple insurance companies for residents looking to buy renters insurance. With just a few clicks, residents can streamline the process and purchase a policy of their own while they are signing a lease, and operators can verify the proof of insurance and continue to monitor it.
Regardless of the reason for implementing an InsurTech service, whether it’s to effectively track insurance or create a better lease experience for renters, operators are benefiting residents, onsite teams and their company by doing so. With the help of InsurTech, operators gain the ability to know which residents are staying up to date with their renters insurance and residents can rest assured that they are always covered because if they forget a payment or renewal date, they will receive an automated reminder.
When there’s a gap between operators, residents and insurance companies, InsurTech creates the bridge to connect them and helps operators keep a closer eye on any residents slipping through the insurance cracks. By eliminating any doubt of residents having renters insurance, operators have better compliance and risk mitigation for operators strategies, onsite teams have more time to focus on customer service and renters have a more streamlined and easy way to select customized policies when signing a lease.
Operators are protecting asset value and their bottom line by certifying that every inch of their property is covered should an unfortunate event occur while getting a better rate on property insurance. On the same token, residents no longer have to worry if their coverage has lapsed or spend valuable time shopping around for a policy that suits them.