Except for those renters who trash their apartments, most renters anticipate receiving at least a fair portion of their security deposit after leaving their rental. However, in a survey by rent.com more than one-fourth of renters (26%) have lost the security deposits at some point. The most alarming statistic is that 36% of those renters got no explanation from their landlord. (Which may be illegal in some states.) In this article, we discuss security deposit insurance. It is one of the most practical alternatives that can secure both the residents and the landlord.
Security deposit insurance
The product known as security deposit insurance provides a coverage equal to the same amount the resident would be required to pay as the traditional security deposit at a percentage of the cost. This reduces the renter’s overall move-in cost. Landlords can buy the insurance and offer it as an option to their residents. When a resident chooses this option, a payment plan for the premium could be established which can be a monthly payment, an annual payment or even a one-time fee.
* To the residents, it saves them money and time. They only pay the premium and they don’t have to worry about how big of a portion they are getting back on their security deposit when they leave the unit.
* Many times it is transferrable to a different unit within the same community.
* To landlords, it gives you a competitive advantage with a “No Deposit” marketing strategies.
* Covers your property up to the same amount of the required security deposit from most common resident-caused damages.
* The basis for security deposit insurance premiums is typically the resident’s credit history, prior renting history, owning pets, having kids or other factors.
Like any other insurance policy, the security deposit insurance will have a list of the type damages they cover. Likewise, we recommend asking what the specific coverage is from insurance company. Here is a list of some of the most common damages that this type of insurance covers:
* Damage caused by pets and kids
* Carpet iron burns
* Cigarette burns
* Common unit water damage
If the apartment you are trying to get does not provide the security deposit option you can ask for other available options like, surety bonds, or security deposit replacement. Most of these other option work like the insurance but they have different requirement and different advantage.
Before you make your next big move, give us a call today at Garrett’s Moving & Storage for reliable moving services. We’re happy to offer tips for a seamless moving experience. Alternatively, just click here, and you can submit a quote request online and we’ll contact you with an estimate or arrange to come on site for a review of what needs to be moved.