Security Deposit Waiver Program

If the renter chooses the program instead of a security deposit, they are afforded $1500 or $3000 of coverage for theft or accidental damage to the unit or its contents during their stay. If a renter needs to report damage, they’ll be asked to fill out a one-page form. It’s that simple. You collect the form and depending on the program you’re enrolled in, either request reimbursement from the claim administrator, or seek payment out of designated fiduciary claim fund that you manage.

As a property manager, you’re not between a rock and a hard place when it comes to the interactions between the owner of the unit and the tenants: Imagine a renter states that the item was already damaged and the owner states they don’t care who did the damage. They just want it fixed. The property manager is then caught in the conflict and is the most likely to pay out for the damage.

With our program, the process is streamlined into one where you are reimbursed from for the damage out of a designated claims fund. The days of pouring revenue into the conflict between unit owner and tenants are numbered when all parties are comfortably covered for damage at a lower overall cost; Moreover, the rates of the Security Deposit Waiver Program now enable an additional revenue stream, and yield consistent monthly revenue.

The unit owners will be pleased to learn the Security Deposit Program listed as an alternative, given that it affords $1500 or $3000 of damage and theft coverage, which is considerably higher than a traditional security deposit.

For the renter, it’s a true transfer of overall risk. If the renter accidentally damages the unit or its contents, they’re protected by the coverage. With traditional security deposits, the money comes straight out of the renter’s pocket. The Security Deposit Waiver Program removes the worry of “when” and “how much” from the security deposit the tenant receives from the unit owner.

Does the Security Deposit Waiver Program give the tenant the right to damage the unit due to paying a flat Fee?

The policy excludes intentional acts, gross negligence or willful and wanton conduct. In our years of experience in the field, occurrences of renters causing damage to the unit intentionally given the scope of coverage is almost non-existent. Our clients have not reported increases in annual damage when they switch from the traditional security deposit to our Security Deposit Waiver Program.

Why would I use an insurance company for this program?

Our program helps to avoid problems with State Insurance Departments and/or Real Estate Commissioners and has been operating successfully for property managers like you since 1999. In many states, security deposit laws regulate any money collected by the property manager that is taken as a security deposit. Having an insurance carrier such as Fortegra Insurance Company underwriting the program adds validity by covering the obligations of the property manager. Additionally, having this policy in place provides the actual unit owner and tenant with the financial protection of an insurance company.

For more information get in touch.