Renter’s Blog

The Crucial Missing Clause In Apartment Leases? Mandate For Renters Insurance

THE CRUCIAL MISSING CLAUSE IN APARTMENT LEASES? 

MANDATE FOR RENTERS INSURANCE

Affords Landlords Greatest Protection,

New Software Programs Facilitate Tracking of Policies

 

By Melissa Neis

Vice President

Parr Insurance Brokerage, Chicago

 

An intriguing irony exists today in many standard apartment leases. There are rules that cover a number of essential areas ranging from payment terms and security deposits to pets, smoking restrictions, workout facilities and more. The regulations are designed to protect landlords from financial liabilities and the property from damage, improper egress or other dangers.

But, far too many agreements fail to include a requirement that can protect landlords from even more significant costs. The missing clause? Stipulating that the prospective tenant has renter’s insurance before legally occupying the residence.

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IIT Institute of Design Strategy Conference

Patrick Whitney of IIT Institute of Design,Don Norman of Nielsen Norman Group and Roger Martin of Rotman School of Management discuss design and strategy.

Patrick Whitney of IIT Institute of Design, Don Norman of Nielsen Norman Group and Roger Martin of Rotman School of Management discuss design and strategy.

Tom Neis and Melissa Neis Wittenborn attended the 2014 IIT Institute of Design Strategy Conference, a two day event held annually in Chicago. The conference explores how design thinking can optimize company strategy through practical, user-focused solutions. Executives from Steelcase, Intuit, Logitech and United Healthcare shared their organizational successes implementing design tactics, while the Institute’s professors offered academic insight on trendy topics like big data, privacy, and research methodology.

Drawing from disciplines like engineering, social sciences, business, and the arts, design thinking uses various tools to uncover the human needs at the core of a product or business problem. Then, after extensive research and brainstorming, designers create prototypes to help visualize and refine ideas. The goal: to create empathetic and user-focused solutions to complex issues.

As technological innovation continues to propel market disruption, it’s no wonder that many businesses are looking to retain market share by improving user experience. Across all industries big businesses are adding design teams to tackle major problems. Even business schools are including qualitative design methodologies in their curriculum as a supplement to more traditional quantitative analysis.

The past few years have seen a design and innovation bonanza.  If the design achievements explored at the Strategy Conference offer any indication, the role of design will only become more integral to how businesses shape strategy and solve core problems. And in the insurance industry, we look forward to it! Our industry has remained largely static for decades. We sell products that are often misunderstood by the public though arguably outmoded distribution channels. We certainly don’t have to look far for opportunities to improve customer experience.

At Parr Insurance Brokerage, we continuously seek out new ways to deliver relevant and cutting edge products to our customers, but sometimes it takes an educational experience like the Design Strategy Conference to inspire truly innovative ideas.

A special thanks to Ashley Lukasik the Director of Corporate Relations, Communications & Marketing at IIT Institute of Design for inviting Parr Insurance to this fantastic, thought provoking event.

Should Condo Associations Restrict Rental Units?

Pictured: Mary Markis of Perl Mortgage, Walt Teichen of Parr Insurance Brokerage and Michael Shenfeld of The Shenfeld Group

Pictured: Mary Markis of Perl Mortgage, Walt Teichen of Parr Insurance Brokerage, and Michael Shenfeld of The Shenfeld Group

Parr’s insurance adviser Walt Teichen joined a panel of industry experts at 1150 N. Lake Shore Drive to discuss the impact that rental units have on condominium buildings. Since the real estate market crash, there has been an uptick in condos available for rent. Condo owners are holding onto investment properties that won’t sell, causing their owner-occupied neighbors to appeal to the association for rental restriction bylaws.

And who could blame them? Renters make less desirable neighbors. They don’t have a stake in the property, and simply don’t care as much about the character of the development. In fact, most insurance companies perceive high rental occupancy as a sign of instability. Condominium associations should beware: when your rental percentage exceeds 10%, your building’s insurance policy will likely be surcharged. In fact, many standard markets wont even offer building coverage if the rental percentage surpasses this mark.

If your condo building allows rental units, there are a number of measures that the condo association should take to mitigate risk, such as:

  • Requiring copies of the sublet contracts between owner and tenant
  • Requiring proof of insurance from every tenant
  • Requiring notification of vacancy
  • Establishing specific rules in the bylaws regarding subletting

The exact number of allowable rental units in any given property is not boilerplate and should be based on a number of factors unique to each complex. If you would like to learn more about condominium association insurance, please contact Walt today: walt@parrinsurancebrokerage.com.

Chicagoland Apartment Association’s 2014 Trade Show and Education Conference

Mark Lipski at the 2014 Trade Show and Education Conference.

Mark Lipski at the 2014 Trade Show and Education Conference.

On April 8th, Parr Insurance Brokerage attended the annual Chicagoland Apartment Association (CAA) trade show and education conference at Dury Lane. CAA represents more than 6,000 apartment professionals who own and/or manage over 141,000 apartments in more than 790 communities and buildings in the Chicago area, encompassing Cook, Lake, Du Page, Will, McHenry, Kane, Kendall, and Grundy counties. At the show, Parr held a drawing for an iPad mini, which was won by Rebecca Roerig of Streeter Place. For more information on CAA and their events, please visit www.caapts.com

Walt Teichen poses with Rebecca Roerig of Streeter Place, our 2014 CAA iPad winner

Walt Teichen poses with Rebecca Roerig of Streeter Place, our 2014 CAA iPad winner. 

The Importance of Being Ergo

Melissa and Kristen

If you’re like us, work can have you hunched over your computer for hours on end, and monthly massages are just the cost of doing business. But do they have to be?

We were visited today by our good friend and workplace safety guru, Kristen Heitman. As a Certified Ergonomics Assessment Specialist, Kristen had some tips and tricks to help make work less of a pain in the neck.

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New Suite Protector Insurance Program Simplifies Renter’s Insurance for Landlords

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An innovative new approach to simplify renter’s insurance for landlords and property managers is now offered by Chicago-based Parr Insurance Brokerage through Burns & Wilcox. Called Suite Protector, the web-based platform provides guaranteed acceptance for tenants in approved communities, quick coverage and instant notification for tracking activity.

“Making sure tenants are insured is a time-consuming and often cumbersome task for rental property managers,” said Melissa Neis, vice president of Parr Insurance Brokerage. “The Suite Protector online resource makes it easy for landlords to track tenant insurance, and provides a source of recovery to the landlord for property damage, and to the tenant for personal property.”

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