Our Platinum Tenant Liability Insurance offers Property Managers an affordable solution to provide their Tenants with liability coverage.
This policy will offer the Landlord $100,000 per occurrence in coverage for tenant liability damages resulting from fire, smoke, explosion, backup or overflow of sewer, drain or sump, water damage, falling objects and collision with vehicles at no cost to the landlord you represent.
Per Home COVERAGE: $100,000
FAQ’s FOR TENANT LIABILITY INSURANCE
WHAT IS THE PLATINUM TENANT LIABILITY POLICY?
The Platinum Tenant Liability Policy offers coverage for tenants of single family homes by providing additional liability coverage giving tenants the ability to protect themselves against accidental damages to a home they do not own. This coverage fulfills the lease obligations from negligently caused damages associated or caused by the tenant.
WHAT IS THE COST TO THE PROPERTY MANAGER?
$9.00 Per Month, Per Home, charged to the Property Management Company. That cost is passed on to the Tenant.
HOW MUCH SHOULD I CHARGE THE TENANT EACH MONTH?
We recommend Property Managers charge a monthly Administration Fee to cover the cost of implementing, administering, and paying for each policy per month. There is no guideline for what to charge, but we recommend keeping it reasonable and within what your market would allow. NPMN will assist you in determining that amount.
WHAT DOES THIS POLICY COVER?
This policy offers protection from accidental or negligent damage associated with the perils of fire, smoke, explosion, backup or overflow of sewer, drain or sump, & water damage of up to $100,000 per occurrence with no aggregate limits.
HOW DOES THE PROPERTY MANAGER REQUIRE TENANTS TO OBTAIN THIS INSURANCE?
The Property Manager includes this as a mandate in every lease agreement, and every lease renewal as a new policy.
The Landlord requires coverage of $100,000 per the lease agreement. Tenants may opt out of this coverage by obtaining a similar policy from their own insurance company of choice. Or – they can do nothing, and this coverage will be added to their monthly rent payment automatically.
HOW DOES A TENANT BENEFIT FROM THIS COVERAGE?
The Tenant is protected against accidental incidents within the home that would be the fault of the tenant. In the event of an incident without this required insurance, the Landlord would be forced to make a claim with the Landlord’s insurance company. Under that claim, the Landlord’s insurance company would then seek legal action against the tenant to get reimbursed for the claim.
HOW IS THIS COVERAGE DIFFERENT FROM RENTER’S INSURANCE?
The standard HO-4 Policy, more commonly known as “Renter’s Insurance” only covers contents for the Tenant inside the rental home and offers some liability protection. However, with most Renter’s Insurance policies, if there is a claim for damage to the home from tenant negligence, the Landlord’s insurance would have to cover the loss.
DOES THIS POLICY COVER ANY OF THE CONTENTS OF A TENANTS HOME?
NO. We encourage all Tenants to seek out Renter’s Insurance to specifically cover their personal contents inside their home and vehicles.
IS THE PROPERTY MANAGER REQUIRED TO HAVE AN INSURANCE LICENSE?
NO. The Property Manager is implementing a policy inside their lease agreements that will mandate this coverage for all Tenants that you manage. You are simply ensuring lease agreement compliance by offering this policy.
WHY WOULD A TENANT WANT THIS COVERAGE?
The Platinum Tenant Liability Coverage is a streamlined method to meet the Landlord’s requirement in the lease to provide the required liability coverage. By opting into this policy through the lease, Tenants meet the required coverage of $100,000 per occurrence and indemnify themselves from further legal action resulting from a loss to the property associated with a claim.
WHY WOULD A HOMEOWNER WANT A PROPERTY MANAGER TO IMPLEMENT THIS INSURANCE COVERAGE?
The Homeowner (Landlord) benefits greatly from the additional mandated coverage of $100,000. If a tenant is involved in an incident that this insurance would cover, the Landlord would not have to file a claim with their Homeowner’s Insurance. Meaning their rates will not rise, and their policy would not be cancelled because of an incident where this coverage would reimburse their loss.
ARE TENANTS ALLOWED TO OPT OUT OF AUTOMATICALLY BEING ENROLLED IN THIS COVERAGE?
Yes. The Landlord only mandates the coverage of $100,000 in Tenant Liability Insurance. The tenant is allowed to seek coverage by their own provider. The Tenant only needs to provide the Landlord proof of insurance showing that the Landlord was named as an “Additionally Interested” party, and covering the $100,000 per occurrence.
WHO IS BACKING THIS INSURANCE?
The Platinum Tenant Liability Insurance is backed by Beecher Carlson Insurance company out of Atlanta, GA.
Platinum Tenant Liability Policy
Claims & Support Department
(844) 277-6640 · (303) 549-9149
HOW DOES THE PROPERTY MANAGEMENT COMPANY SIGN UP TENANTS?
By mandating this into your lease agreement, the lease addendum or portion of your lease describing this coverage is all the sign up forms you need. No separate websites, no credit checks, no premium fluctuations. Simply add an addendum to your lease agreement and put the monthly charge on the tenant ledger for payment each month to your company.
HOW DOES THE PROPERTY MANAGEMENT COMPANY PAY FOR THESE PREMIUMS EACH MONTH?
At the end of each month, we ask the Property Management company to simply pull a report from their management software showing the homes they are covering with their address and tenant name. NPMN will then send a PayPal invoice to the management company to remit payment to.
WILL YOU BE ABLE TO ASSIST ME WITH FORMS AND IMPLEMENTATION OF THIS PROGRAM?
YES! The founders of NPMN are also Property Management business owners like you and we know the challenges of putting something into action like this. We will ensure your company is set up for success with this program.
For further information or inquiries about membership in NPMN contact us at firstname.lastname@example.org.
This Platinum Tenant Liability Policy program is available exclusively for residential properties under management by members or affiliates of National Property Management Network, LLC.