Pub. 5 2020 Issue 5

6 www.ctaahq.org know that they are covered the very day they move in. That’s a day that involves carrying a lot of boxes and furniture, which means it is also a bad day not to be protected in the event of an accident. • Payment options and deductible lev- els matter. Common deductibles are $250, $500 and $1,000. Insurance plans should also allow convenient payment structures for renters to make payments once a year, once every six months, once every three months or monthly. • Encourage renters to find out what the insurance policy promises in the event of apartment damage during an emergency. The additional living expenses (ALE) part of an insurance policy should provide a renter with money to pay for temporary lodging or utility costs if an apartment is dam- aged enough that the renter has to live somewhere else for a while until repairs have been made and the apartment is habitable again. • Does the renter have a pet? Pet damage endorsements are a good idea, but it’s better for the renter not to have a breed restriction on the policy. These endorse- ments cover damage that wouldn’t be covered adequately by a pet deposit. If a dog destroys the baseboard or ruins carpeting by urinating on it, pet dam- age endorsements can pay for the repair work and new carpet. • Policies often have other optional en- dorsements. For example, maybe cover- age for $50,000 is more appropriate than coverage for $20,000. A renter might also be interested in having liability cov- erage for issues such as toilets, showers, and bathtubs that overflow and cause water damage. Renters insurance certainly benefits rental property management, but it can also save renters money in the event of an emergen- cy. Fires, burglaries and natural disasters are a part of life. By mandating renters insurance, you protect every- one involved at very little cost to the person renting from you. If renters understand the benefits, they are likely to appreciate the fact that you are making sure they are covered when it comes to any- thing expensive and unpredictable. Insured losses caused by natural disasters cost $25.5 billion in 2019. With that kind of money at stake, it makes all kinds of sense for renters insurance to be mandatory. Renters insurance certainly benefits rental property management, but it can also save renters money in the event of an emergency. Fires, burglaries and natural disasters are a part of life. Continued from page 5