Win-Win Solutions

Making the Case for a Mandatory Renters Insurance Program

The win-win scenario…

Without the protection of a mandatory renters insurance program such as ResidentShield, resident damage can lead to financial hardship for property owners and residents. Traditional voluntary plans are difficult to implement and, more often than not, result in very low resident participation levels. Consider this typical scenario involving a property that has encouraged a voluntary plan:

A resident leaves a pot on the stove and falls asleep. The pot catches fire and causes a small fire before it is extinguished. The repair estimate involves the replacement of damaged kitchen appliances and the carpet in the unit. Finally, a resident located in a nearby unit suffered smoke-damaged clothing and a destroyed television due to water seepage when the fire was extinguished. All told, the damage estimate is $18,000.

Unfortunately, the resident who was responsible for the fire and the damage did not have liability coverage. In addition, the property owner’s commercial insurance policy has a $20,000 deductible per-occurrence provision. Because the total amount of the loss is less than the deductible, the property owner has little choice but to fund the repairs out of the operating budget. To make matters worse, the property owner is dealing with an upset resident who wants their destroyed personal items replaced.

Does this scenario sound familiar? If so, ResidentShield could be your solution. Had this property owner implemented the mandatory ResidentShield program, the property owner and residents would be made whole (indemnified), and the resident’s personal contents would be replaced as well. The property owner would not have to file a claim using their commercial insurance policy and the residents’ contents claims are settled in a timely manner. That’s the win-win of the ResidentShield program!

ResidentShield reduces stress—for your bottom line and your residents’ peace of mind.