Mandatory Renter’s Insurance on the Rise

From an article titled Mandatory Renter’s Insurance on the Rise in Multifamily Executive:

Today, 84 percent of apartment companies say they require residents to buy renter’s insurance, according to the National Multi Housing Council’s 2012 Apartment Cost Risk Survey. That’s up sharply from 62 percent in 2011. (Fifty-five leading apartment companies that among them operate more than a million apartment units responded to the 2012 survey.) 

But the battle isn’t won yet. Of the respondents that said they require renter’s insurance, 40 percent don’t require it at all of their properties. Managers at some communities worry that requiring prospective residents to pay an extra $10 to $15 a month in insurance may drive them to the competition.

Many property managers have tried to gain more control by partnering with companies that provide insurance to their residents. Firms like Atlanta-based Assurant Specialty Property can work through a property’s website to offer insurance policies and may even collect the monthly premium as part of the rent. The property management company may sometimes collect administrative fees from companies that provide the insurance.