Monday, May 19, 2008
Why Risk It?
The concept of Renters' Insurance is a simple - demand it, or deal with the incredible risk involved with damages ranging from fire to power surges. An article published in the latest edition of NAA's magazine Units - highlights that mandatory renters insurance reduces the financial expenditures related to resident caused damage by 79%.
A 2006 study by Dirk Wakeham CEO of LeasingDesk Insurance Services reported a majority of owners from his survey (82 percent) who offered and required residents to have a renter's insurance policy--and then enforced it--said they would "absolutely" recommend this type a mandatory renters insurance program.
Grant Berkey, Vice President, Capstone Real Estate Services Inc., an Austin, Texas-based fee management firm responsible for more than 50,000 units described an experience of A resident at one of their properties that had a kitchen grease fire which spread to both adjacent units causing damages totaling more than $38,000 in repairs. Berkey explained "fortunately, the resident was insured and we were able to file our claim through their renter's insurance policy."