The multifamily industry, as a whole, has not yet aggressively and proactively
addressed the role of residents in assisting owners to mitigate risk and to
assume responsibility for their own negligent acts. Inexplicably, the
multifamily industry remains one of the few corporate entities that does not
require insurance from its clients.
Of the approximately 25 million apartment units nationally, only 5% to 10% of
those units currently implement a policy which, in theory, protects the owner
and the resident. Those traditional policies do not, in fact, protect the
owner.
A paradigm shift by owners is gaining momentum requiring residents to obtain and
to provide proof of insurance as a means of managing their liability risks, and
equally important, to provide communities with a level of protection from
damages caused by residents. The result from an owners' perspective is a
pragmatic improvement in their overall risk management strategy. It
is evident that the multifamily industry is moving toward a mandatory or
full-participation philosophy regarding renters liability insurance.
Renters Legal Liability is garnering market share as companies move toward a
full-participation program in mitigating significant hidden risks for owners and
managers. Mandatory programs eliminate nuisance claims against owners'
insurance. Renters insurance creates a safety net for residents when
affected by catastrophic events, providing liability loss coverage for losses
where they will be required to assume responsibility.
The statistics are irrefutable and compelling, that absent a requirement in the
lease agreement, over 90% of all residents will NOT autonomously provide
coverage for themselves. As an industry, multifamily companies must
embrace the high value of resident-caused claims and combat this trend with
broader financial understanding of their exposure, as well as identify the tools
to remedy this situation. Renters Legal Liability™ Insurance is, in fact,
that vehicle.