For Property Managers

PROTECT YOUR OWNERS WITH AN ACCIDENT DAMAGE WAIVER PLAN

Program Overview

Property damage coverage is an absolute necessity when it comes to protecting both an owner’s property and profitability. If uncovered damage occurs at a rental property, the Property Management Company (PMC), the owner and the tenant are all likely to be negatively affected.

It is now common for Property Management Companies (PMC’s) and Property Owners alike to mandate renter’s insurance or accidental property damage coverage in new leases and renewals (about 64% of all multi-family housing communities now enforce this requirement).
Additionally, evidence shows that this requirement doesn’t impede a property’s ability to attract new residents or raise rent over time. Implementing this invaluable first layer of protection for Investment properties is an easy and inexpensive way to help owners protect their property and bottom line.

Program Details

The Accident Damage Waiver Plan is an affordable means to protect against accidental, tenant-caused damage to the owner’s property.

  • Coverage for any tenant-caused accidental damage (see terms-and-conditions)
  • Reimbursement to owner up to $1000 lost rental income
  • Reimbursement of tenant up to $1000 for tenant displacement
  • Coverage up to the lesser of Owner’s policy deductible or $5,000

There’s no approval process or set-up cost. Costs for the coverage from Renters Assurance Company is usually about $8 per unit per month, depending upon average repair costs for your region, with a deductible of only $50 per occurrence.

Freedom of Choice

While property damage coverage is important, you should not force a specific coverage brand on your tenants. Presenting your tenants with option to enroll in the ADWP or to purchase traditional renter’s insurance helps to ensure your tenants will have the type of coverage and at a price that is best for their situation. 

BENEFITS

PROPERTY MANAGERS

  • Easy to manage
  • Greatly reduces stress with all affected parties
  • Helps fill the uninsured gap amount of the owner’s policy deductible, up to $5,000
  • Great benefit to offer new owners at no additional expense
  • Provides an additional reoccurring revenue source to the PMC, usually abut $4 – $5 per unit per month, for compensation to help administer the Program.

RENTERS

  • No-hassle enrollment, they simply select this option for auto enrollment
  • No need to provide Proof of Insurance
  • Avoid potential financial hardship, litigation, damaged credit, etc.
  • Reimbursement up to $1000 for tenant displacement
  • Tenants pay just a small additional amount in their monthly rent payment

OWNERS

  • Reduces owner’s risk of damage to their property
  • Less risk of losing money when tenant is incapable of making restitution
  • Up to $5,000 of coverage
  • Reimbursement up to $1000 lost rental income
  • All units automatically qualify
  • Cost of the Accidental Damage Waiver is paid by tenant