INDUSTRY FACT SHEET

• In 1999, estimates indicate $842,000,000 in property damage occurred in apartments (NFPA).
  
  
• In 1999 alone, 88,500 fires occurred in apartments accounting for 16.9% of all structure fires (NFPA).
  
  
• Property owner's insurance costs for property, liability, and casualty continue to dramatically increase.
  
  
• Property owner’s policy deductibles range between $10,000 and $25,000 per occurrence. While this coverage addresses a major catastrophe, most low dollar, resident-created liability losses rarely reach the per-occurrence deductible threshold.
  
  
• Claims not covered by the owner’s deductible are typically expensed against the operations budget, directly impacting NOI and reducing the capitalized value of the real estate.
  
  
• Property owners benefit from personal liability renter’s insurance.
  
  
  • Insurance coverage reduces costs from unpredictable and expensive resident acts by transferring liability risk to the resident’s insurance carrier.
  • Personal liability renter's insurance allows the property owner to recoup the cost of the insurance deductible in cases of resident negligence.
  • Minimizes arguments with resident as to who is liable for damage or accidents.
  • Opens up a new revenue stream through ongoing monthly commissions on policies purchased by your residents.
    
    
• LeasingDesk.com advocates “full participation” amongst properties that request renter’s insurance of its tenants. Implementing such a model significantly impacts the properties revenue opportunity.
  
  
• In virtually every other sector associated with liability risk (i.e. automobile purchases, home purchases, etc.) the individual is accountable for their own losses.
  
  
• Resident’s benefit from renter’s insurance. HO-4 coverage provides residents with:
  
  • Coverage for personal belongings in the event of accidental and unexpected damage such as fire or theft, water damage from roof leakage or plumbing overflow.
  • Coverage for additional living expenses if the renter can't live in their apartment as a direct result of an insured loss.
  • Coverage for personal liability if the renter is accused of accidentally causing injury to someone or causes damage to someone else's property.