When selecting an insurance program for your tenants, price is an important factor but it should not be the only thing that influences your decision. Tenant insurance programs come in two forms - mail-in and pay-with-rent. Mail-in programs have no administrative fees and do not require as much work from the facility owner. The pay-with-rent option give the customer the ability to include the insurance premium with each monthly rental fee. The facility is then responsible for keeping a record of the transaction and all other administrative duties. Here are some important things to consider before undertaking this process:
Choosing an insurance partner - You can review a wide range of insurance providers in order to find the best match. Check to see what programs they have in place to increase tenant participation and whether or not they are willing to train your managers, prepare marketing materials, and assist with the creation of letters and emails to send to your clients. Financial stability is also another key area to look at when choosing an insurance partner since you want to make sure your tenants are properly covered if they file a claim.
Review the benefits - Always ensure that you have a proper understanding of the benefits that will be provided. Some policies offer a flat rate for the facility compensation portion while other include a total percentage of the premium. It is critical to fully understand which selection you are choosing and determine which is the better financial option for your organization.
Be aware of all the costs - Insurance programs come with all types of costs. While you might earn policy administrative fees for every tenant that signs up, check to ensure that what you are earning covers what it will cost you to implement and sustain the program.
In order to make your tenant insurance program a success and guarantee maximum participation, you should appropriately train your managers and staff to explain the benefits to tenants. Once they have a proper understanding of the insurance program, then they will be better able to relay the information. You should also check current customers who have not purchased insurance and remind them regularly that there is available coverage. If you dedicate enough time to putting a proper program in place, then there is an opportunity to increase the revenue of your facility even further.