The Campus Housing Risk Mitigation Research Study was administered by Research Consultant, Ben L. Hoglund, CPM, a multifamily housing operations specialist, on behalf of Next Generation Insurance Group LLC (NGI).
The purpose of the survey was twofold:
Identify the challenges that student housing officials face in addressing property damage and other financial losses due to resident-caused fire, flood, theft, vandalism, and negligence.
Assist in the design and configuration of renter’s insurance programs that protect student housing providers and residents from property and financial losses due to resident carelessness and negligence.
Summary of Results:
Trends in Campus Property Damage Loss
Flood and water intrusion are by far the most likely incidents to cause damage in excess of $5000. On average respondents experienced one major flood event per year, compared to an average rate of once every five years for fires, and once every two years for all other property damage incidents combined. (Q3-Q5)
30% of respondents experienced over $50,000 in property damage losses in 2010-2011 due to fire, flood, or other incident in residential units causing over $5,000 in damage. (Q6)
There were a wide variety of responses on the degree to which fire, flood, and other incidents causing over $5,000 in damages are due to resident carelessness and other fault. (19% no opinion, 19% estimated over 80%, 46% estimated under 20%). (Q7)
Risk Mitigation and Reimbursement Policy
University self insurance was identified as the largest source of repayment for campus housing financial losses due to property damage (28%), followed by billing to resident ledger (26%), and resident renter’s insurance (22%). (Q19)
33% of all respondents indicate that it is not their policy to require reimbursement for resident-caused fire, flood, or property damage in excess of $5000. Collection rates vary widely for institutions that hold residents accountable for damage to school property due to carelessness or negligence:
- Over 80%: 31%
- 61% to 80%: 31%
- Under 61%: 38% (Q18)
- 57% of respondents strongly recommend that residents obtain renter’s property insurance with 2% indicating that they have no policy on the matter. Only 26% strongly recommend that residents obtain renter’s liability insurance. 1 in 5 participants have no policy on resident liability coverage. (Q20, Q22)
- 24% of respondents were not aware that some renter’s insurance products do not include protection for both resident personal property and personal liability. (Q21)
Resident Education and Awareness
Over half of all respondents estimated that less than 60% of their residents are aware that they can be held financially responsible for damage to university property for which they are at fault. Roughly the same number indicated that less than 60% of their residents are aware that they are responsible for losses to their own personal property due to fire, flood, or other incident for which they are not at fault. (Q8-Q9)
Overall, respondents gave a higher rating to the effectiveness of employee safety and awareness education efforts, than programs designed for residents. Additionally, mitigation of losses to school property through safety and awareness education was deemed more effective than mitigation of losses to resident personal property. (Q16-Q17)
Resident Personal Property Loss
Theft of personal belongings and bike theft generated the highest number of incidents resulting in damage or loss to resident personal property in 2010-2011. (Q10-Q14)
Incompatible roommates, excessive noise, and substance abuse, were identified as the top 3 sources of resident complaints. For insurable incidents, vandalism, electronics theft, bike theft, and flood produce the highest level of resident frustration. (Q15)
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