Webinar Recap: Rethinking Risk Management - New Strategies for Multifamily Success

In a recent webinar, industry experts Wil Robertshaw, Head of Insurance for Entrata, and Chris Bidwell, Senior Director of Risk Management at Cardinal Group, delved into the evolving landscape of risk in the multifamily sector and explored innovative strategies to mitigate those risks while simultaneously boosting Net Operating Income (NOI) and enhancing the resident experience.

The discussion began by acknowledging that risk in multifamily has transcended traditional concerns like slips and falls. Today, operators face a complex web of challenges, including property damage, liability claims, the prevalence of uninsured or underinsured residents, and the complexities arising from increased resident turnover and short-term leases.  

A core theme of the webinar was the importance of moving beyond traditional, outdated risk mitigation tactics. It is important to note that the financial losses incurred by operators due to these risks are predictable and preventable with the right safeguards in place.  

Renters insurance, a long-standing tool for mitigating resident-caused damage, was a key focus. Simply requiring renters insurance isn't enough anymore. Properties must make renters insurance mandatory and actively monitor residents’ policies to ensure compliance. Relying on manual paper tracking is neither viable nor scalable. Incorporating automations into the process is essential to verify policies, track compliance, and make your site teams more efficient. 

Next, the webinar covered Tenant Legal Liability (TLL) programs, which offer an alternative or supplement to traditional renters insurance. TLL programs can provide consistent coverage, simplify the claims process, and even create a controllable revenue stream for operators. The experts highlighted the importance of considering TLL, especially in light of rising commercial property insurance rates and increasing repair costs.  

Security deposits and deposit alternatives were also a topic of conversation. With some markets seeing a push towards lower deposits, operators face increased risk from damages typically covered by traditional deposits. Deposit alternatives offer a way to lower move-in costs for residents while providing owners with protection against unpaid rent, utilities, and damage to the property. The speakers also noted the legal considerations surrounding deposit alternatives, as some jurisdictions now mandate or regulate their use.  

Properties must find a balance between risk mitigation and resident experience. The key is to offer residents simple, transparent options and integrate insurance and deposit solutions seamlessly into the leasing process. This approach aligns with the expectations of today's renters, particularly Gen Z and Millennials, who are accustomed to subscription models, embedded services, and flexibility.  

Drawing from Cardinal Group's experience, Bidwell shared valuable insights into what's working for his business. Master policies with embedded coverages have proven effective in maximizing compliance, reducing administrative burden, and streamlining the resident experience. Deposit alternatives also help reduce friction during the application process while providing residents with more choices.  

The webinar concluded with a powerful message: modern risk management in multifamily is not just about protection; it's also about driving revenue, increasing efficiency, and creating a positive resident journey. The speakers urged operators to revisit their insurance and deposit strategies annually to stay ahead of market trends, evolving resident expectations, and new technologies.  

Want to learn more about these innovative risk management strategies?

Visit [LINK] to rewatch the webinar and explore further insights.