Top 4 Reasons to Offer Embedded Renters Insurance

Break-ins, natural disasters, and accidents are extremely common occurrences that affect rental properties, but less than half of U.S. renters have renters insurance. If your company offers services related to renting, you’re in the perfect position to offer your customers the protection they need while also increasing your revenue. In this blog, we are going to cover the top 4 reasons to offer renters insurance.

1) Your Customers Need Protection, and You Can Make It Easy for Them to Get It

According to a 2019 FBI crime report, there were an estimated 1,117,696 burglaries in the U.S., resulting in an estimated $3 billion total loss and $2,661 average loss per burglary offense. For renters, this could be devastating without insurance protection to fall back on. 

Renters are also uniquely susceptible to climate disasters. In 2021, the U.S. experienced 20 different climate disasters including wildfires, twisters, flash floods, hurricanes, and other tropical storms, resulting in billions of dollars worth of home damage. In predominantly renter-occupied cities, disaster protections and recovery funds are minimal and tend to favor homeowners, which leaves renters vulnerable. 

Simply put, renters want and need protection, but most aren’t covered. There are over 43 million renters in the U.S. but only 41% of them are covered by renters insurance. This means that there’s an opportunity for your business to provide a necessary and valuable solution. 

Because your company offers goods and/or services to renters, you’re in an optimal position to offer your customers this renters insurance product that they need, when they’re already in a mindset where they’re likely to purchase insurance. You can provide easy access to an all-digital, embedded insurance product and give your customers peace of mind and financial security.

2) You Can Provide the Streamlined, Digital Insurance Process that Modern Consumers Want

Modern renters - and consumers in general - expect an easy, digital experience for all of their transactions. Traditionally, however, the insurance buying experience has been long, complex, and disjointed, involving multiple offline steps. 

The difficult buying process can be enough of a barrier that some consumers abandon it altogether. Millennials in particular make 60% of their total purchases online, and may have the least patience for cumbersome offline transactions. With 54% of renters under the age of 44, this group needs renters insurance more than ever. If they were offered a simple, digital solution, they would be more likely to convert. This creates a big opportunity for your business to provide that solution.

When you work with an embedded insurance partner like Boost, you can provide your customers with a 100% digital purchasing experience, with no need to ever pick up a phone or search for a printer. Renters can seamlessly purchase and manage every part of their insurance policy and claims through your website or application, with the easy-to-use experience they expect. 

3) You Can Reach Renters When They’re Most Likely to Buy Insurance

The beauty of embedded insurance is that your customers are already transacting on your site or app. When your customers are in the transaction process on your website, it’s a prime opportunity for you to offer them the additional value of renters insurance. You can reach them when they’re already thinking about their home, and so they’re most likely to be interested in buying insurance. The best part is that they never have to leave your website or their purchasing experience. 

By offering your customers a valuable product that they need, you can deepen your relationship with them and provide more reason for them to trust you, which can only improve your brand perception and experience.

4) Renters Insurance Can Help You Increase Engagement, Revenue, and Customer Lifetime Value

The single biggest reason to offer embedded insurance is that it is a significant financial opportunity, which builds value for your company in more ways than one. 

In 2022, the renters' insurance market size is $4 billion and growing. Since less than half of American renters have insurance, a considerable amount of that market is open for new entrants to tap into. This gives your business a significant opportunity.

Insurance creates new recurring revenue which can have immediate financial benefits. When your customers purchase insurance from you, they will make regular, premium payments to keep their policies active, providing your company with ongoing income. Best of all, this new revenue comes without significant additional acquisition costs. You’ve already done the hard work of building a trusting relationship with your customer. 

Monthly payments (similar to subscription businesses) lead to stickier, recurring customers instead of one-time purchasers. With the latter, you need to stay top of mind to them so they keep purchasing from you. With monthly payments, though, you will have higher, regular customer engagement and better retention rates.

Engaging with your customers in more than one area gives them more reason to stick with you. In fact, the average retention rate for the insurance industry is 84%. The more your customers buy from you, the more likely they’ll keep buying from you, increasing your customer lifetime value (LTV). Regular, repeating income streams are also exactly what investors and shareholders like to see.

If you already sell to renters, offering renters insurance is a great opportunity for your company to grow its revenue and further appeal to your customers’ needs and purchasing desires. 

If you want to learn more about growing your revenue with white-labeled, embedded renters insurance through Boost, contact us, or dive into building your insurance program with Boost Launchpad.

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