CHBO tries to find the most We highly recommend the ARDP insurance policy. What happens when there is damage? If you charge the renter a fee to their security deposit what are the chances you get a good review? More importantly, is the liability that comes with taking funds from a security deposit. Each state varies, but if an owner charges for damages that the tenant did not do, the owner can be held liable for somewhere up to 3x the amount they charged the tenant. This option is a win/win for the owner and the renter and here’s why:
•Renters don’t have to tie up money
•Owners don’t have to nickel and dime their tenants for minor expenses.
•There’s no back and forth with the renter on the condition something was in prior to arrival.
•Owners don’t have to come out of pocket for accidental damages they don’t feel ethical charging the tenants for.
•The process is simple. Owners purchase the policy for each renter and charge renter the amount (or include it in the rent), if any damages occur the owner (tenant involvement is not required) submits a claim, within 15 days, with repair/replace receipts. Through the ARDP the amount is reimbursed directly to the owner.
Terms and Conditions
Accidental Damages to a Rental Property
Tenants/renters must notify the owner/property manager of any damage or theft to the unit during their occupancy. Failure to notify the owner/property manager may void your coverage under the plan and leave you the tenant/ renter responsible for any damage to the unit. These are the coverage options for your convenience. You must register for a CHBO account to purchase coverage.
Cost
$1,500.00 coverage limit, $60 for 30 Days - Purchase Coverage
$3,000.00 coverage limit, $90 for 30 Days - Purchase Coverage
Explanation of policy
PROPERTY PROTECTION PROGRAM (CONTENTS). Our properties and their contents are valuable and reasonable care should be taken with them during their rental.
Our company, including the participating rental property homeowners we represent (“we”, “our”, “us”), is an additionally-insured participant in a Property Protection Program that reimburses certain costs for unintentional accidental damage to our properties during their rental occupancy. With our participation in this Program, except in certain circumstances, we do not collect and hold refundable security deposits. We charge renters a non-refundable administrative fee to defer our costs for Program participation.
Exclusions
If, during a renter’s occupancy, renter or a member of renter’s party or renter’s guest causes any damage to real or personal property of our rental property as a result of unintentional accidental acts or omissions, renter must notify our property management office at that time, and before check-out. For rentals that exceed the coverage limits of the Program, we may collect a supplementary refundable (net of any damage reimbursement) security deposit from renter upon check-in. Renter is liable to us for any damages caused by renter or a member of renter’s party or renter’s guest that are not reimbursed to us or exceed the maximum per-incident limit of our coverage, and the credit card on file and/or any collected security deposit will be charged. If renter wishes to pay a refundable (net of any damage reimbursement).
