Deposit Alternative Misconceptions

What’s true, what’s false, and everything in between

While insurance agreements have been used to maintain accountability between multiple parties for decades, insurance products that replace security deposits are a fairly new concept. That means there’s a great deal of misinformation out there about deposit alternatives; what they’re used for, who can benefit from them, and how they stack up 1:1 against cash deposits. Since deposit alternatives are here to stay, it’s important to do some mythbusting so owners can make the most informed choices possible.

Myth 1: There’s a maximum number of claims I can submit with a deposit alternative

Myth 2: If I submit too many claims a deposit alternative provider won’t want to work with me

Myth 3: Deposit alternatives are meant to attract less qualified, higher-risk renters.

Myth 4: All deposit alternatives use pooled coverage

Myth 5: If a renter stops paying for their deposit insurance, owners are left unprotected

Myth 6: Deposit alternatives aren’t as good as cash on hand

Want to work together?