The Importance of Loss Control Measures for Residential Landlords
Landlords have many responsibilities: finding the right rental and location, conducting maintenance and ensuring consistent occupancy to maximize the return on investment, to name a few. One responsibility that often gets overlooked, however, is reminding tenants of the importance of purchasing renters insurance.
According to a recent survey conducted by Nationwide, 59% of adults between the ages of 23 and 29 do not have renter’s insurance, and 46% don’t think they need it at all. The average cost of a renter’s policy is about $219 per year, or $18 per month, which is a relatively low cost to prevent against a potentially significant loss for all parties involved.
While homeowner’s insurance is compulsory as a mortgage requirement, the same enforcement is not as common when it comes to renters insurance. Uninsured tenants can be problematic for both themselves and their landlords since a common policy provides coverage for the tenant’s belongings as well as liability coverage. The liability portion of a renter’s policy could be critical for a rental dwelling owner, especially in the event of a loss due to a fire.
According to FEMA, the top three causes of fires in homes are cooking, heating equipment and electrical malfunctions, and it can take just 30 seconds for a small flame to turn into a major blaze. Oftentimes, fire damage to a rental is the result of the tenant’s use of cooking or heating equipment, not the negligence of the landlord. In these cases, the insurance carrier covering the property damage should be able to subrogate against the renter’s insurance policy, which could prevent the landlord from experiencing higher premiums or policy cancellation depending on the severity of loss history (The Zebra).
Having a tenant with an HO4 policy in place is one of the best ways to mitigate risk; however, landlords today need to rely on many resources to run and scale their businesses effectively. It’s also incredibly important for them to have access to loss control tools and information to help reduce risk and educate renters.
Our Business Resource Center can help by providing access to:
In addition to helping your landlords with loss control, USLI can be your go-to market for your rental dwellings because of our broad appetite. We can consider entities such as LLCs, trusts and estates, we can consider up to 10 locations per insured and larger schedules within our commercial appetite, and we offer full personal injury to cover wrongful eviction and invasion of privacy. We also make the quoting process extremely easy with web, phone and email options, and we are accessible so you can talk to someone when you need to.
Please contact your Personal Lines underwriter today to obtain a quote or to learn more about our rental dwelling appetite.
As always, thank you for your support and business.
Contact Dan Lewis
Underwriter | 888-523-5545, ext. 2626
Written by Cory Bennett