The Renters Assurance Company (RAC) Accidental Damage Waiver Plan is intended to reduce or eliminate risks associated with common insurance coverage gaps of most residences. Basically, it is meant to cover the deductible amount of the landlord’s policy. The plan covers most of the smaller incidents that are likely to occur at a residential dwelling, up to a maximum of $5,000. For incidents above that amount RAC, works with the landlord’s insurance company for damages above the $5,000 limit. This reduces almost all the risks of any potential coverage gaps commonly associated with rental properties.
There are other companies in the marketplace that offer their own form of a damage waiver. HOWEVER, these companies place a large emphasize on offering a $100,000 of coverage but LIMIT COVERAGE TO JUST A FEW PERILS they are willing to cover.
Most of these alternative companies LIMIT their coverage to these perils:
- fire damage
- smoke damage
- water damage
- explosions
The high limit damage waivers may appear attractive on their face but they still leave the tenant and property owner exposed to substantial risks for ALL OTHER TYPES OF DAMAGE.
On the other hand, RAC COVERS ALL INCIDENTS of tenant-caused accidental damage regardless of the type of damage with the exception of intentional damage or vandalism. (see details at rentersassurancecompany.com/terms-and-conditions for details).
Here is a sample of a few items what would be covered by RAC but not covered by the other companies:
- spilled bleach on carpet
- floor damage from spills on carpet
- fire on stovetop
- sewer backup from child’s toy
- breaking a lightfixture
- sheetrock/paint damage from moving furniture
- water overflow from sink or tub
- backing car into garage door
- tear in vinyl flooring from moving refrigerator
- accidentally breaking a window
- etc.
Additionally, most situations do not require the tenant to carry a $100,000 of coverage since the landlord’s policy is likely to cover the costs after meeting his or her deductible amount of the landlord policy. If the tenant pays for a $100,000 of coverage and the landlord pays for a $100,000 policy for the same coverage then both are paying for a duplication of the same benefit.
Doesn’t it make more sense for the tenant pay for coverage that is more likely to get used rather than for coverage that would already likely be covered by the landlord’s policy?
RAC’s Accidental Damage Waiver Program may be the perfect fit for your property management business or rental property. Please call 435-787-1111 or email sales@RentersAssuranceCompany.com for more information.