What is the Renters Assurance Company (RAC) Accident Damage Waiver Plan and what does it cover?
The RAC provided Accident Damage Waiver Plan is an accidental damage waiver granted to the tenant for a small additional payment of rent that covers tenant-caused accidental damage to the owner’s or Property Management Company’s managed property up to a maximum of $5,000.
How much does Accident Damage Waiver cost and how is it billed?
The total cost to the tenant is usually around $13 (depending on your region’s cost index for repairs) per opted-in rental unit per month for the benefits of receiving a Damage Waiver (plus applicable taxes and fees, if required by your state or local). A monthly bill will be sent to the PMC from Renters Assurance for the units enrolled in the program. The PMC keeps a portion of the fee as compensation for helping administer the Accidental Damage Waiver Plan, thereby creating an additional recurring revenue source (usually $4 to $5 per opted-in unity per month) while providing additional protection to the owner’s property.
Where should billing questions be directed?
Please send any billing questions to billing@RentersAssuranceCompany.com or call us at 435-774-0951.
Who pays for the cost of repairs?
Renters Assurance Company (or an affiliated Reinsurer) covers the costs associated with eligible tenant-caused damages.
How quickly are claims reimbursed?
Most claims are reimbursed within 30 days. The size, severity, and complexity of the claim will determine if a desk or field adjuster is involved and if the claim can be processed and closed in more or less time.
How does the claim process work?
Claims should be handled directly with the PMC using the claim form provided by Renters Assurance. Tenants will work directly with their PMC (or property owner) and the PMC will coordinate reimbursement payment(s) from RAC for the repairs. The PMC coordinates the repairs and pays the local vendors with the funds they receive for the claim.
Are the tenant and tenant’s belongings covered?
NO. The Accidental Damage Waiver Plan provides coverage to the owner/manager of a covered rental unit. The Plan provides up to a maximum of $5,000 for accidental tenant-caused property damage. Tenants may be reimbursed by the PMC up to $1000 for displacement and the owner may be reimbursed up to $1000 for lost rents. The tenant does not received any insurance coverage for the tenant’s personal property or liability but rather a waiver of responsibility for having accidentally caused damage to the owner’s property. As an example: if the tenant accidentally causes an overflow or backup of a sink, then this would be a covered incident. But if the sink’s pipe or hose leaks or breaks, or damage from a flood/natural disaster happened this would not be covered by the Accident Damage Waiver Plan but likely would be covered by the owners insurance policy.
If the tenant’s appliance causes the damage, would this be covered?
Only claims caused accidentally by the tenant could be covered. Therefore, if the tenant’s washing machine malfunctions, the machine-initiated damage would not be covered. If the tenant accidentally causes a flood by overfilling their washing machine, the damage caused to the unit would be a covered incident.
If an accidental incident also causes damage to adjacent units, would that damage also be covered?
Yes, but still only up to the maximum limits per incident described above.
Are built-in appliances like stoves and dishwashers covered as part of the damage to the structure?
If the appliances are owned by the owner, yes. If they are owned by the tenant, no.
Are other liabilities covered such as dog bites, personal injury or slip and fall covered?
No, the Accidental Damage Waiver Plan is NOT a liability policy.
What is the deductible?
$50 per occurrence.
Why would a tenant choose the Accidental Damage Waiver Plan over traditional liability insurance?
The Accidental Damage Waiver provides a convenient and easy way to move in and live in the unit without needing to obtain and maintain insurance. The costs is a small additional payment of rent included in with the monthly rental payment. When enrolled, the tenant does not need to provide proof of insurance.
Is there a maximum number of occurrences stated eligible in the Plan?
No, there is no maximum.
What is the tenant’s obligation under Accidental Damage Waiver Plan?
The tenant has no direct obligation to cover the costs of repairs since the PMC and owner provides the tenant with an Accidental Damage Waiver. However, tenants must follow the terms of their lease in reporting damage to allow the PMC or property owner to meet the timeliness of performing repairs and filing claims. Intentional damage or gross negligence are excluded. See Terms and Conditions for specifics on excluded items.
What are some examples of the types of accidental damage you have covered in the past?
Here are some sample items that Renters Assurance Company has
covered in the recent past.
- Foor damage from moving furniture
- Damages from spills on carpet (ex. wine, bleach, soda, etc)
- Fire on stovetop
- Sewer backup from child’s toy
- Broken light fixture
- Sheetrock/paint damage from moving furniture
- Water over flow from sink or tub
- Backing car into garage door
What are some examples of the types of damages you have NOT covered in the past?
Damages from these types of incidents would NOT be covered under the plan.
- Sewer backup from tree roots
- Water over flow from malfunctioning clothes washer
- Any type of pet damage
- Intentional neglect, misuse or vandalism such as:
- broken door jam from door being kicked in
- holes punched in walls
- multiple spills on carpet from careless partying
- etc.