Renters insurance offers important protection for residents and property managers alike. For a small monthly fee, residents can financially protect themselves from property loss due to a range of issues: natural disasters, break-ins, property damage, etc. We suspect that you, the property manager, already know this and may require renters insurance at your properties. But some residents may be hesitant to pay that little extra monthly fee. They might wonder:
- Is renters insurance worth the cost?
- What does it take to get set up?
- How can I trust the insurance I’m being offered?
We’re here to help you answer these questions from renters, including a sample “elevator pitch” to make it easier to discuss renters insurance with residents. To close, we’ll cover the benefits of renters insurance for self storage tenants.
“Is renters insurance worth the cost?”
This is probably the most important question to be able to answer when it comes to renters insurance. You need to demonstrate to your residents the value they’re getting.
And there’s a lot of evidence on your side.
Renters should know that their landlord is not legally responsible for replacing their possessions. Renters insurance protects residents from having to pay for personal or property damages accidentally caused by them or other factors including:
- Water damage
- Theft, etc.
In what amounts to pennies a day, renters insurance gives total peace of mind against a worst-case scenario: losing everything they own. The cost is low enough that it shouldn’t strap anyone for cash.
Depending on the state, some renters insurance plans go further than others with:
- Optional pet damage coverage
- Optional water/sewer coverage
- Guaranteed premiums — no increases resulting from past claim activity
- Ability to include non-related roommates on one policy
- Replacement cost coverage for personal property
Pro tip: Rather than scare someone into making a purchase, keep the focus on the positives: total coverage, low cost, peace of mind, etc.
“What does it take to set up and manage my account?”
Luckily, renters insurance is very easy to set up. Most insurance providers allow renters to enroll online. If your property management software includes the option to sign up for renters insurance during the online leasing process, this will help increase the number of residents with coverage because they won’t have to look elsewhere to purchase a policy.
Monthly payments are worry-free and convenient. With the right provider, renters will be able to enroll online within minutes, They’ll pay a highly affordable rate for maximum protection, with convenient monthly payments and guaranteed premiums. They’ll also have an easy way to access their policy information and file claims online. What’s more, property managers benefit from detailed compliance reporting and policy activity tracking in addition to protecting your assets.
“How can I trust the insurance I’m being offered?”
It’s important to establish trust when you discuss renters insurance. Residents want to know they can trust you as well as the company that underwrites the policy. That’s why we offer ResidentShield, a proven renters insurance option that fully integrates with Yardi Breeze and Yardi Breeze Premier. It’s a quick, easy and affordable way for residents to get into their new home faster. While your residents have the option to go with any provider they choose, having a preferred policy option available during the leasing process makes things easier for you and your residents. Talk to your new residents about your preferred policy and why you offer it.
Pro tip: ResidentShield includes promotional brochures to help property managers explain to residents the benefits of choosing ResidentShield to protect their belongings.
Customer service matters
ResidentShield utilizes insurance carriers that specialize in multifamily renters insurance, so the processing of loss claims is done by specialized adjusters who deal exclusively in renter claims. Let your new renter know that your preferred policy provider meets community liability coverage requirements and has multiple plans to protect their belongings.
ResidentShield Master Policy
The master policy offers reduced risk and peace of mind for you and your residents. It should be noted that this policy covers liability only and does not include protection for residents’ possessions.
ResidentShield H04 Policy
An H04 policy goes a little further than the property manager’s standard master policy in terms of what it offers renters. It takes about five minutes for residents to enroll, offering liability coverage up to $100,000. They can even have up to four non-related adult occupants on a single policy. The average premium for $100,000 in liability and $10,000 in personal contents is just $13 per month.
Deliver a good “elevator speech” on renters insurance
You may only have one conversation with your new resident about renters insurance, likely between the time you accept their application and receive their deposit. Even if you require liability insurance, you can show them the benefits of personal coverage. A quick pitch similar to the one below can help you discuss renters insurance and get residents to see the importance of full coverage.
Sample renters insurance pitch
Renters insurance works a lot like car insurance, but instead of protecting just one valuable asset, it’s covering where you live and, depending on your plan, everything you own and anyone who accidentally gets injured in your home. Not everyone knows that in the event of a break-in or event that causes loss of property, the landlord and property owner aren’t responsible for replacing your things. So, in what amounts to a rate virtually everyone can afford, you’re protected against the worst-case scenario. We can show you several plans, and you can pick one with a deductible that works for your budget.
A protection plan for self storage tenants
Self storage tenants should understand what is covered and where they are liable. Discuss the importance of a stored goods protection plan just as you would for residential tenants. Focus on the following coverage benefits:
- Fire or lightning
- Windstorm or hail
- Explosion or sonic boom
- Strikes, riot or civil commotion
- Aircraft, self-propelled missiles or spacecraft
- Landslide, including sinkhole collapse
- Vandalism or malicious mischief
- Vermin, etc.
Residential renters insurance does not apply here, as the coverage needs are different. Any storage tenant can purchase a GoodShield self storage stored goods protection plan. They simply need to use their Yardi Breeze Premier tenant portal.