Elevating Resident Adoption to Better Protect Your Properties and Tackle Rising Commercial Insurance Costs

The commercial insurance landscape is evolving rapidly, driven by factors, such as rising operating expenses, shifting resident expectations and the need to mitigate risk. As property owners and operators grapple with increasing insurance premiums, they must find innovative solutions to protect their properties and bottom lines while enhancing the resident experience. Let’s explore how increasing resident adoption of renters insurance can be a game-changer in managing insurance costs, particularly through the use of the RealCoverage™ platform.

The challenge: Balancing risk and resident expectations

 The reality of insurance in multifamily

Increasing premiums: Owners property insurance premiums have surged, averaging $180 per unit per year. Insurance expenses have nearly doubled in the past five years, now accounting for 8% of quarterly per-unit operating costs. This sharp rise in premiums places significant financial strain on property owners, compelling them to seek cost-effective strategies.

Rising operating expenses: After years of escalating rents, the market is now stabilizing or even declining. Property owners face the challenge of maintaining profitability while managing these increased costs. Balancing revenue with the growing expenses requires a strategic approach to cost management.

Limited insurance adoption: Historically, residents have shown low adoption rates for preferred insurance options, leaving properties exposed to inferior third-party policies with inadequate coverage. This gap in coverage increases the risk of substantial financial loss for property owners.

Policy limitations: Owners are grappling with new policy limitations imposed by insurance carriers to reduce exposure. Many have increased deductibles to maintain affordability, shifting more financial risk onto property owners.

Tech-savvy residents: Today's residents demand a modern consumer experience, influenced by advancements in technology across various industries. Satisfied residents are twice as likely to renew their leases, making resident satisfaction a critical component of property management.

The solution: RealCoverage

RealCoverage by RealPage® offers a strategic approach to combat rising insurance costs. Here’s how:

Increased resident adoption

The RealCoverage platform provides residents with multiple insurance options, including traditional renters insurance and master policy programs. This variety encourages higher adoption rates, as residents can select coverage that best suits their needs. When residents choose adequate insurance, it reduces the risk of underinsured properties, which in turn helps manage overall risk and costs for property owners.

Streamlined operations

RealCoverage integrates an efficient sign-up process, removing the burden from site teams. By tracking third-party policies, it ensures compliance and simplifies insurance management. This streamlined approach not only saves time but also reduces the potential for human error, making insurance management more efficient and reliable.

Enhanced resident experience

RealCoverage platform offers great multiple coverage options and convenient payment methods — such as pay-with-rent liability insurance — to meet residents’ lease requirements. Residents can sign up during the leasing process. This convenience enhances the resident experience, leading to higher satisfaction and increased lease renewals. A satisfied resident is more likely to stay, reducing turnover rates and associated costs.

Gap coverage

For residents who don’t comply with lease requirements, the RealCoverage platform provides gap coverage, minimizing risk exposure for property owners. This safety net ensures that all resident caused perils are covered, protecting the property from potential uninsured losses.

The strategic imperative of increasing resident adoption

As the insurance industry grapples with unanticipated risks, evolving technology and changing customer expectations, increasing resident adoption of insurance becomes a strategic imperative. RealCoverage not only protects properties but also enhances the overall resident experience. By offering residents choice and convenience for their insurance needs, property owners can mitigate risks and drive better outcomes for both their business and their residents.

In conclusion, the multifamily insurance landscape is challenging, but solutions like RealCoverage offer a path forward. By focusing on increasing resident adoption, property owners can better manage rising insurance costs, streamline operations, enhance resident satisfaction and, ultimately, protect their investments.