Let's talk about insurance for rented furniture that sits in a property for sale.
In the state of Oregon, stager's insurance is not adequately covering a serious source of potential loss. We can buy coverage for everything but THEFT BY MYSTERIOUS ENTRY. That means if there are no signs of a break-in, there is no coverage. So we've lost some things over the years, a couple of substantial hits, and have taken a few precautions to limit our exposure to more losses.
Homeowners who have moved out cannot or won't get coverage because if there is a claim, they can have a problem getting covered in their new home. The insurance industry needs to help us by offering increased coverage for stagers at a reasonable cost.
Has anybody got any ways around taking such risk? We have taken the following precautions to do business in this climate:
1. Just say NO when you are not comfortable with the circumstances. This could be about the neighborhood, the seller, the realtor. Trust your intuition.
2. Write into your contract that all lockboxes and keys other than those in the Realtor lock box must be removed the day the stagers move in. Find out if family members or neighbors have keys too and politely request they be rounded up if not already.
a. Require that all contractor work be done before move-in, not only to reduce risk, but to keep drywall dust off your duds. That way, the contractor lockbox can be removed.
3. Photograph everything before you leave the day you move in, and every day you are working on the project up until showtime.
4. Never leave your toolkit on the job site.
5. Make an inventory of each item in the final staging, either from the photos, or from the final walk through.
6. Personally check all window locks to be sure they work.
7. Schedule a return to check on it. Look again at the window locks at that time.
Once pretty early in my staging career, I was really desperate to earn income on my staging props. So here comes an opportunity, a model in a townhouse complex. The neighborhood was sketchy, and so I explained the potential for losses if someone were to leave a door unlocked and return thieve and pillage. I was ready to say no to the job, but the seller was insistent on staging and we came up with a 3-way Warranty. We listed and valued every piece of décor, and added a contract addendum where three parties (Seller, Realtor, and my company) all agreed to split any potential losses.) Good thing we did, as $4300.00 of props were taken. Unbelievebly, one of the partners in the townhouse complex had left the garage door unlocked because I we asked that no key be left under the mat!!! In the end, I was paid 2/3 of the value, and had to figure I had derived value greater than 1/3 already with all the use I had gotten from it.
I really don’t suggest being in a position to use the 3-way Warranty. I really don’t like the risk that I take without it. Even in a “good” neighborhood, rugs and artwork have been taken without forced entry.
Lately, my marketing is focused on higher-end jobs to reduce risk. I love security buildings, but I still do not want to leave out a significant slice of the market, so we stage onward and hope for solutions.
What is it like for the rest of you? Does your state cover MYSTERIOUS LOSS? How can stagers in risky states approach the insurance industry for increased coverage?
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Hey Paula - my contract puts the liability on the home owner for everything in the house. Is this what you mean? Other than that, I know I assume the risk of actually collecting on that contract should someone actually break in and steal my property, but all businesses assume some risks. I chalk it up to the cost of doing business. I will just write it off to bad debt.