What Resident Insurance Penetration Looks Like at Month 1 vs. Month 30

The biggest misconception about captive resident insurance programs is judging them by month 1. Month 1 isn’t the measure of a program’s value. Month 30 is. This post compares resident insurance penetration at month 1 vs. month 30 in two of the programs we’ve built, and what the climb between them means for how you evaluate a program.

Month 1: what to expect

Month 1 depends almost entirely on how many new residents moved in and enrolled. That number is small relative to the portfolio because:

• Monthly turnover in multifamily typically runs 2% to 5% of units, or 20 to 50 move-ins a month in a 1,000-unit portfolio.

• Existing residents move over at renewal, so they contribute almost nothing in month 1.

• The program is new to leasing staff, and consistency builds over several months.

Month 1 in the two documented cases:

• 10,141-unit portfolio: 603 enrolled residents, $6,633 a month in net revenue, 6% penetration

• 3,364-unit portfolio moving off RealPage: 4 enrolled residents, $44 a month, 0.1% penetration

These aren’t failures. They are month 1 numbers. Judging a captive by month 1 is like judging a new community by leases signed on opening day.

Month 30: the same programs

• 10,141-unit portfolio: 9,455 enrolled residents, $104,005 a month, 93% penetration

• 3,364-unit portfolio: 2,515 enrolled residents, $27,665 a month, 75% penetration, at month 31

Our programs have consistently averaged 75% to 93% resident enrollment over time, and these two cases sit at either end of that range. See the full revenue trajectory month by month.

What drives penetration from month 1 to month 30

Lease renewals: the main engine

Every renewal is a chance to move an existing resident into the captive. Illustrative example: a 1,000-unit portfolio on 12-month leases sees about 83 renewals a month. At 85% enrollment among renewals, that adds about 71 enrolled residents a month.

New move-ins: the steady feed

With 5% monthly turnover, or 50 move-ins, and 85% enrollment, a 1,000-unit portfolio adds about 42 to 43 enrolled residents a month. This feed doesn’t slow down. Our guide to move-in enrollment covers the process.

Leasing team skill: the multiplier

Enrollment rates typically improve 5 to 10 percentage points by month 6 as leasing staff get comfortable presenting the program and handling opt-outs. Read more on reaching 90% enrollment.

How to evaluate a program

• Month 6: if enrollment is tracking at 20% to 25% of units, the program is on course.

• Month 18: a program on course should show 50% to 65% of steady-state monthly revenue.

• Month 30 and beyond: steady state, when enrollment nears its ceiling and distributions recur every year.

The right question isn’t what the program returns in month 1. It is what it returns in year 3 and every year after.

How Insur3Tech fits

Insur3Tech’s captive has no minimum premium and no unit minimum; portfolios as small as 4 doors can join. There are no holdout periods. The entire program is reinsured, so you carry no downside risk. What isn’t spent on claims comes back to you. We insure 100,000+ doors.

Want your month 6, month 18 and month 30 projections? Book a free discovery call. We’ll audit your portfolio for free and tell you how much you can expect to get back every year.