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LeasingDesk Introduces New Risk Management Product

Apartment owners able to maintain complete property coverage

Irvine, California (February 27, 2004) — LeasingDesk, the largest provider of group insurance programs for the multifamily industry, announced today the launch of a new product to protect apartment owners from resident negligence. The Apartment Owners Limited Building Policy (AOLBP) acts as a safety valve for apartment owners, ensuring that the property is 100% covered even if residents default on their liability insurance.

As part of a risk management program, many apartment owners and managers have adopted mandatory liability insurance programs as a means to place all liability risk back on the residents. Residents must show proof of insurance when they sign a lease, however if they default on that insurance, there isn’t anything the insurance company can do. “Liability insurance can be cancelled by the resident at any time,” states Dirk Wakeham, CEO and President of LeasingDesk. “LeasingDesk can only report the default back to the owner, then it is up to them which course of action to take against the resident. With AOLBP, the policy can automatically cover any damage to the unit while the owner takes the necessary steps to insure the resident has coverage.”

AOLBP follows a blanket coverage model – the property owner is named as the primary insured and pays the premiums on a monthly basis as needed. If a resident default is brought to their attention, the owner or manager simply enrolls that uninsured unit in the program until the coverage is replaced by the resident. “Property owners pay between $7 and $15 a unit for coverage, only when they need it” says Wakeham. “This ‘stop gap’ insurance allows owners to maintain complete coverage and lower their risk.”

Typically the apartment owner will amend the lease to include an up charge of $15-$25 per month should the resident default on the liability insurance requirement. This charge covers the cost of the AOLBP premium and provides an incentive to the resident to maintain their insurance.

About LeasingDesk
LeasingDesk is the largest provider of group insurance programs for the multifamily industry, specializing in affordable renters and liability insurance products for residents. The eRenterPlan products are provided by LeasingDesk and underwritten by numerous companies including QBE Insurance Corporation, QBE Specialty, Sirius America Insurance Company, Homesite Insurance Group and Balboa Insurance Group.

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