We’ve already covered some reasons why renter’s insurance is a good idea for residents and property managers alike. But how do you convince your tenants to pay for and retain a policy that many people assume is expensive and unnecessary?
Be a myth buster
Many renters have more than a few misconceptions that keep them from purchasing a renter’s insurance policy. Knowing which myths are most common and being able to refute them makes it easier to convince residents that renter’s insurance is the right choice.
“Renter’s insurance is too expensive”
FALSE. According to the Independent Insurance Agents & Brokers of America, the average renter’s insurance policy costs $12 per months for $30,000 of property coverage and $100,000 of liability coverage.
“I don’t have enough stuff for coverage to be worth it”
FALSE. Allstate estimates that the average American apartment dweller owns about $30,000 worth of stuff. When considering the value of their belongings, most renters think about big ticket items like electronics and appliances, while failing to consider the cost of replacing all essential items that make day to day living possible.
“Renter’s insurance only covers my belongings, not liability”
FALSE. Rental insurance policies cover liability in situations where the property owners policy may not. For example, if a fire starts in one tenant’s kitchen and spreads to a neighboring unit and damages furniture, then the first tenant’s rental insurance policy will cover liability in the other unit.
“I’m a renter, so my landlord’s insurance will cover my belongings”
FALSE. Most property owners carry insurance that protects the structure, not anything inside of the units.
Refer residents to a trusted renter’s insurance provider
It’s easier to convince residents to purchase a policy during the initial lease signing. Have a list of trusted providers ready for new tenants, and make sure the names you recommend have a website, good customer service, and premiums that are low enough to be cost effective for your target resident.
Consider offering incentives to residents who maintain active policies. This doesn’t have to be a rental discount (though that is an option). Try to tailor your incentive to match your residents’ lifestyles.
Educate your residents
Taking the time to explain the benefits of renter’s insurance to new tenants during the lease signing requires only patience and maybe a short printout with information. Training your leasing agents to include this step in the process is a low cost way to increase coverage among your tenants. Ask your preferred insurance provider if they have marketing materials that you can make available in your office.