Proper Property Management Includes Insurance Management
Digested from “Why Renters Insurance Works for Residents and Property Owners”
Property Management Insider (12/23/14) Blackwell, Tim
Although the percentage of renters who have renters insurance has gone up in the last few years, current insurance conditions may not be as positive as the numbers imply because of lack of policy adherence and education on the importance of such policies. For example, renters may establish a policy and obtain the documentation to meet apartment community criteria, only to cancel a few weeks later.
Although this would mainly hurt the renter, who would be completely liable for any loss or damage to his or her belongings, as well as to the property inhabited, it would also hurt the property manager, who might have difficulty collecting rent as the renter attempted to replace or repair belongings and the property.
Property managers can encourage more responsible insurance practices by providing a list of recommended insurance firms at the onset of the leasing process, mandating renters insurance and implementing other policies to better enforce adherence, and raising rents to cover the purchase of renters insurance by the apartment community.