As professional stagers, you are uniquely positioned to impact the sale of your customers’ homes.
The ambiance and curb appeal provided by your services often means the difference between a quick sale and the property being stuck in limbo.
Ask any professional stager, however, and they’ll tell you that their services are not without risk.
In this article, we’re going to address the topic of staging risk management. We’ll also talk about available staging risk insurance policies designed to protect both the staging professional as well as the homeowners themselves.
What is Staging Risk Management Insurance?
To understand what staging risk management insurance is, it helps to think about the staging process itself.
When a home stager contracts with a client, they establish a timeline for the sale. After all, nobody wants their home to remain vacant for an extended period of time. In doing so, however, the home stager takes on personal risk in the form of their on-site inventory.
In the period of time between initially staging the property and its eventual sale, any number of things could happen, including:
- Vandalism
- Fire
- Theft
If you work for a larger real estate firm, losses like that may be considered regular operating costs, but for the averaging staging professional, any lost inventory spells financial trouble. Staging risk management insurance provides a way to mitigate that risk.
What are the Benefits of Staging Risk Management Insurance to You and the Seller?
Let’s say the unthinkable happens to your on-site inventory. While it might be tempting to think that the seller’s homeowners insurance will cover the damage, you’d be incorrect.
For starters, most homeowners’ policies no longer cover personal property if the house has been vacant for 60 days or more. If they do cover anything, it will only be a small amount. But that begs a more important question: why would the homeowner want to utilize their policy for your items?
Regardless, staging professionals need to protect their businesses, assets, and customers. Staging risk management insurance takes care of all three. But how do you correctly position a policy to your customers while continuing to build a trusting and professional relationship?
Tips For Effectively Positioning Staging Risk Management Policies
A Staging risk insurance policy protects both the home stager and the seller. But how do you effectively communicate that to your client? The key is transparency.
First of all, it should be included in your contract, and your rates should be adjusted to include the cost.
From there, communicate the fact that it will cover all losses if the unthinkable does happen; there’s no need for them to submit a homeowners insurance claim.
If for any reason they refuse the coverage, make sure your contract stipulates that losses are their responsibility and have them initial this portion of the contract.
Additionally, request that they add you as a beneficiary on their existing homeowners’ policy should they refuse to purchase the SRM policy. RESA CEO Shell Brodnax sums up client positioning in the best way possible:
“It doesn’t make good business sense to use your insurance policy for damages when you did not cause the damage. One solid claim on your policy and your insurance rates will increase –or you might be dropped altogether. Sellers don’t like to hear that.
My advice is to offer the SRM policy as part of your contract upfront. If they balk at it, request that they get a rider with their homeowner’s insurance that notes your company as the beneficiary covering the replacement cost of your inventory. Most insurance companies won’t do this.
That’s when an SRM policy becomes appealing. Personally, I would not take a job unless I had a rider from their homeowners’ Insurance policy or an SRM policy as you are risking taking a loss that you did not cause.”
In the end, most staging professionals are entrepreneurs. They have to protect their business and their assets, but that doesn’t mean they have to do so at the expense of the client.
If you’re interested in learning more about staging risk management insurance, official RESA membership includes special insurance rates and offers. Be sure to visit us online for more information.
CLICK HEre FOR SRM POLICY INFO FOR THE US and CANADA
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