Accidents and damage happen—it’s just a fact when managing rental properties. When these accidents happen, if your renter doesn’t carry tenant liability insurance it can be expensive and a hassle for everyone. To avoid these costly situations it is becoming increasingly common for property managers to require residents to carry tenant liability insurance.
With other solutions that aren’t built right into your property management software it can be very challenging to accurately track resident insurance. At the end of the day this can leave your properties vulnerable and exposed. With AppFolio Tenant Liability Insurance Services, AppFolio customers can now instantly enroll residents in a basic tenant liability insurance program and offer owners and investors increased protection against resident-caused damage.
According to a recent study* more than two-thirds of apartment hunters don’t carry insurance. This means that in the event of accidental damage caused by residents the owners and investors may be exposed. Offering AppFolio’s Tenant Liability Insurance is an easy way to reduce this risk and proactively protect your properties. The largest property management companies are embracing this trend quickly because it increases profitability and NOI.
Rather than spending time and resources working in multiple systems attempting to police the lease requirements, all of the important information is right there in the software you use every day. And when everything is stored and tracked in AppFolio Property Manager, it’s so easy to deploy and track.
Once your lease mandates insurance, add this service to your lease renewals, turn it on and enroll residents with the click of a button. Tracking and built-in reports make it simple to mandate insurance and be sure you have full compliance whether or not your resident has a tenant liability insurance policy.
This is a great service to market to owners as it saves claims on their property insurance or covers the deductible in more serious incidents. When you’re sure the units are covered you will avoid the time and hassle of trying to collect from tenants who just don’t have the funds to pay for the damage. This is truly a competitive advantage for your business.
If you choose to mandate proof of renters insurance for your properties, offering AppFolio Tenant Liability Insurance will provide your residents with a low cost option to meet their lease requirement. Renters who want coverage of their own possessions can always choose to purchase their own renters insurance and provide proof of coverage which is easily tracked in AppFolio Property Manager.
As usual, our pricing model is simple and affordable. There are $0 implementation fees and the price is $9.50 per enrolled unit, per month.
The Commercial Policy is provided by Great American Insurance Group, "A" rated by AM Best & Standard & Poor; the agent/broker is Stern Risk Partners. The Property Manager is the named policyholder (can make claims directly) and enrolled tenants are automatically added to the policy as additionally insured. Policy pays the property manager/landlord for damage to the landlord’s property when tenant is found legally liable. Limited to damage to Landlord’s property arising from the perils of: fire, smoke, explosion, backup or overflow of sewer, drain or sump, water damage, falling objects, riot or civil commotion. $100K limit; coverage is per occurrence with no aggregate limits. The policy is not personal liability insurance or renters insurance.
*Source: 2010 Apartment.com survey