Renters insurance verification

Member since 2021 · 2 posts · 1 vote

what company makes it easy for landlords to verify renters insurance ? How does everyone else goes about renters insurance

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Jared Townsend

Insurance Agent · Orlando, FL · Member since 2015 · 297 posts · 122 votes

You can request to be added as an 'Additional Interest' to their policy. That does not extend any coverage to you, but it does include you on all policy communications including cancellations.

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Jared Townsend
Insurance Agent · Orlando, FL · Member since 2015 · 297 posts · 122 votes
1y
You can request to be added as an 'Additional Interest' to their policy. That does not extend any coverage to you, but it does include you on all policy communications including cancellations.
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Zach F.Business Member
Property Manager · Cincinnati, OH · Member since 2016 · 82 posts · 55 votes
1y
We use this company called Second Nature where they offer a Residents Benefits Package, which includes renters insurance. It's a really good deal for the tenants and puts them on a $100,000 liability policy. This company is aware of any lack of payment or policy change. It's great.

Not sure if they work with folks who only have a few rentals, but definitely check them out.

@Jared Townsend has good advice there, but from my experience managing 1,000's of different "classes" of rentals in Cincinnati/Dayton/Akron-Canton, most tenants will not do this for you. So at that point you risk dealing with very high vacancy rate or you have to find an alternative solution. For Class A rentals, I don't see that being TOO big of a problem.
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- Jared Townsend
  Insurance Agent · Orlando, FL · Member since 2015 · 297 posts · 122 votes
  1y
  
  For sure - at scale this would be a challenging solution! But for most mom & pop operators it would suffice.
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Jack SmithPro Member
Rental Property Investor · Massillon, OH · Member since 2017 · 215 posts · 168 votes
1y
It's just plain awful to manage. At one point we were spending more time tracking tenants' statuses and following up on them than just about any other single activity in our business. Monthly snail mail form letters with Joey Tenant's cancelation notice from Mega Insurance company (that typically just rips them off on their fees with minimal coverage). Followed by a series of back and forth with Joey and him arguing with us about it. Then sometimes, a month later receiving the reinstatement notice... rinse and repeat... Or getting tenants whom outright refuse to add us as additionally insured – if they actually even have a policy - are you going to evict an otherwise good tenant over this!? It never ends and is near the top of the most frustrating things to deal with in this business. We rent B & C properties, and these folks just won't deal with it as a priority - no kidding, they're just trying to hold it all together each month. Understandably.

All this over something the gurus insist you must have backed with all the boogie man insurance horror stories. "It's easy!" they say, "just do this and it's handled." That's just BS.  I'm still convinced it's another insurance industry backed scam. In 30+ years in the business I have NEVER needed this coverage nor even heard of any peer that has either. "But when you do need it, you'll be glad you have the coverage!"... Why in the heck are we doing this to ourselves!?

I'd go round and round with my local insurance agent about a solution - why couldn't I just take out a renter’s policy on them and add it to their rent? "Nope, you cannot take out an insurance policy on someone else." Then NREIG started talking about their TPP program a number of years ago and I thought it was too good to be true. When they finally rolled it out I started providing that and added it onto their rent. So much simpler for us and we check that box of "reducing" risk. But it's NOT an incentive for applicants to pick us, most tenants don’t even recognize what I’m providing, much less care… Eventually I just may cut that out too as I think the whole thing is just unnecessary.

My whole attitude on the insurance industry has become really tainted over the last few years, topped off by a recent experience where my longtime insurer dropped one of my better properties out of the blue over something completely ridiculous. So then I jacked up my deductibles, cut the policy down to bare bones, and vow never to make another claim unless it's a significant event (only one claim ever - smoke damage caused by one of my day laborers at a vacant flip - and I loss my shirt on it). Otherwise, I'll count on reserves & deal with it, sue the tenant if they caused it, and move on. Insurance companies are doing everything they possibly can to NOT pay out at all or just minimally on a claim. They know all the ins and outs better than we ever can. I really feel for you folks that have had natural disasters and found little or no coverage or deal with quadrupled premiums. Insurance agents are NOT your fiduciary nor ally.  There has to be better solutions than this.
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- Allan C.
  Rental Property Investor · Member since 2018 · 826 posts · 809 votes
  1y
  totally aligned with your sentiments Jack. Insurance companies are in business to make money, which means they are taking it from clients. It's all about probabilities and they have their models tuned well.
  
  i max all deductibles and never make claims. If you do the math the analysis supports this on a probabilistic basis. When I own the assets free and clear, I plan on self-insuring. Even if one property had a total loss casualty, what are odds of that happening over investment span vs the amount of premiums you pay. Most people don't look at it this way.
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Courtney Amaya
Property Manager · San Antonio · Member since 2025 · 13 posts · 10 votes
1y
@Jose Galvez- SA Local Property Manager here... The State promulgated contracts don't cover the insurance requirements enough, but it's a critical piece to protecting the property owner. So, we asked our atty provide an addendum to our leases to cover more about renters insurance requirements and ramifications if not maintained.
When you're added as an interested party you receive notice of that - but not if a tenant defaults on paying their policy payments. You could possibly require they purchase the full lease period insurance upfront (usually less than $200), if your not already too move-in cost heavy in comparison to other area listings.
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