Resident Liability Insurance Programs
The multifamily, student housing, senior housing and single family rental home real estate industries are experiencing a trend where large and professionally managed portfolios are implementing a mandatory liability insurance provision in their leases. A National Multifamily Housing Council (NMHC) survey sites 24% of property owners and managers required residents to carry insurance in 2008 and that today that figure is approaching 90%. The percentage is growing every day. Why has the mandatory insurance industry exploded? We believe it is because third party insurance providers are making a fortune.
In the standard arrangement, an owner or management company will partner with a third party insurance provider. That provider will be the preferred insurance provider for the portfolio. The insurance companies are collecting anywhere from $10-$30 per resident per month, they may pay out a negligible “marketing” or “administrative” fee to the owner or management company, and their loss ratios are typically under 10%. This all equals huge profit to the insurance companies.
At POPIC, we have set out to change the required liability insurance industry. Utilizing over 100 years of combined experience in insurance, real estate, accounting, and law, we have created a comprehensive, turnkey platform for our clients that crushes the model set forth by the competition. We believe it is our clients, owners and management companies, that should profit from requiring liability insurance, not a third party commercial insurance company. We have created the most efficient and profitable platform in the industry and we are changing the required liability insurance industry one portfolio at a time.