The PDLW℠ is a risk management tool that fulfills the resident's obligation to protect the owner/ manager as specified in the lease. When a resident signs the PDLW℠ agreement, the contractual obligation to protect the owner/manager from damage caused by fire, smoke, explosion, water discharge, and sewer backup is fulfilled.
In situations where the damages to the insured (owner/manager’s property) are under $100,000, affected residents may receive up to $15,000 to replace personal belongings. This is subject to the terms, conditions, and exclusions of the owner/manager’s insurance policy.
Indemnification means when a loss occurs, the party who sustains the loss (the community owner/manager) should be restored to a financial position approximately the same as if the loss did not occur — no better or worse — by the resident who negligently caused the loss/ damage. Typically, proof of indemnification comes in the form of a certificate of insurance or endorsement that is issued by the insured’s agent or insurance company.
A renters insurance policy is a personal insurance policy purchased by a resident to protect the resident's personal belongings and liability exposures.
The PDLW℠ option simply waives the resident’s contractual obligation to indemnify the property owner for accidental damages arising out of fire, smoke, explosion, water discharge, and sewer backup. As an owner/manager, the PDLW℠ allows you to keep your assets protected in cases where residents are unable or unwilling to obtain their own personal liability insurance policy.
No. The RLL® policy is the community owner’s policy and does not replace the need for the resident to purchase their own personal renters insurance policy.