In most multifamily communities, being a property manager is five jobs in one. From coordinating tours to fielding tenant emails, it feels like there’s an endless list of things to do and not enough people to do it.
In this constant state of work overload, many offices have to find ways to eliminate redundant tasks and streamline their processes. When it comes to renters insurance verification, this may look like conducting a one-time declaration page review before move-in to avoid spending time on coverage checks throughout the year.
Unfortunately, this is one of those shortcuts that can cost you more than it saves. Let’s get into the downfalls of one-time renters insurance verification and how you can set up automated 24/7 monitoring to eliminate gaps in coverage.
The Problem with One-Time Insurance Verification
One-time verification may be a widespread standard within the property rental industry, but that doesn’t mean that it’s the best strategy. A thorough insurance verification process may confirm that your tenant has sufficient coverage at that moment, but what’s to stop them from canceling the remainder of their policy the next day to save a few bucks?
While it may sound far-fetched, early cancellation is actually a lot more common than you might think. Studies have found that 45% of renters cancel their policies before the end of their lease, with one-in-five terminating their policy in the first 180 days of the term of their rental.
During this time, you and your tenant may be unprotected against unexpected risks, and odds are, you won’t even find out until it’s too late. All it takes is one unlucky incident in an uninsured unit, and you can be on the hook for tens of thousands of dollars in damages, if not more.
Top risks of one-time insurance verification:
- Policy cancellation post-move-in
- Reduced coverage
- Change in lease terms
How to Set Up Ongoing Renters Insurance Monitoring
The best way to avoid coverage gaps going undetected is to monitor your residents’ insurance throughout the duration of their lease. That way, you can quickly catch any cancellations and take action to get your renters back on track.
The gaps in additional interest
One way landlords attempt to tackle the issue of ongoing monitoring is by requiring their tenants add property management as an additional interest on the insurance policy.
However, this method doesn’t entirely solve the problem. In many cases, it can take up to 60 days for insurers to mail cancellation notices through traditional mail. Then, once the property management does receive notice, so begins the back-and-forth of trying to get the tenant’s policy reinstated.
The work associated with following additional insured notices is also substantial. You can spend hours pouring through letters, but even outsourcing to a third party comes with its pitfalls. What happens if they don’t handle your renters’ private data appropriately? You could be on the hook for substantial sums if that information gets into the wrong hands, as has happened with several recent incidents.
Hands-free monitoring with CheckMy Resident
CheckMy Resident is the only automated insurance verification process that provides real-time transparency, with the option to check that coverage remains unchanged on a monthly basis, requiring no work from you after the quick and easy set up.
With this solution, you can stay updated on your residents’ insurance policies without delays. Instead of wading through piles of additional interest letters, you can simply open your dashboard to view the coverage status of all of your properties in one place.
Ready to get started? Set up time with our team to see how you can unlock streamlined insurance monitoring for your business.
Free eBook: The Seven Deadly Sins of Renters Insurance
Inside you’ll find:
- The top mistakes property managers make when it comes to renters insurance
- Tips and strategies to avoid the leading pitfalls when building your renters insurance program
- A step-by-step guide to automating your insurance verification and monitoring process