It may be counter-intuitive, but the only way to assure maximum possible accuracy is to involve humans in the process. The skills of a trained researcher are needed to conduct additional searches – warranted by aliases and additional addresses – and to do what it takes to confirm that records returned are accurately associated with the consumer in question.
A failure to search aliases and additional addresses (jurisdictions) will result in underreporting by approximately one third – a bad deal for landlords, employers, residents and the community. A failure to do the additional work necessary to positively match records to the individual is obviously harmful to those unlucky souls who share a name and date of birth with a convicted felon or dubious tenant.
There are liability issues here. Failure to exercise proper due-diligence and to follow applicable legal requirements could result in costly litigation. As a landlord, be sure you also have adequate insurance coverage. Start right now here on PropertyPak.
We also recommend that you require a Certificate of Insurance from your screening firm(s). If possible, always do that before hiring. As a landlord, do you also require that you be named as an Additional Insured on the screening firm's policy or that the policy adequately defines your interest as an insured without naming you directly?
Make sure your contract with the screener spells out your required insurance details. Sometimes, you can't get the exact arrangement you'd most like and for reasons that are beyond the control of the screening company, insurance agent/agency, or even carrier; but, it pays to get the best insurance arrangement available.
Is your insurance agent or agency looking out enough for what's in your best interest?
If you are an investor in 1-4 unit properties in Arizona, California, Nevada, Oregon, Utah, or Washington, please do the financially responsible thing and make sure you have proper Landlord Insurance with PropertyPak™. We love focusing on real estate and the economy in general, but we are also here to serve your insurance needs.
Hill & Usher (PropertyPak™ is a division) has many insurance offerings. See our menu above for more info and links.
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Note: This blog does not provide legal, financial, or accounting advice. Seek professional counsel.
Furthermore, we, as insurance producers, are prohibited by law from disparaging the insurance industry, carriers, other producers, etc. With that in mind, we provide links without staking out positions that violate the law. We provide them solely from a public-policy standpoint wherein we encourage our industry to be sure our profits, etc., are fair and balanced.
We do not necessarily fact checked the contents of every linked article or page, etc.
If we were to conclude any part or parts of our industry are in violation of fundamental fairness and the legal standards of a state or states, we'd address the issue through proper, legal channels. We trust you understand.
The laws that tie our tongues, so to speak, are designed to keep the public from losing confidence in the industry and the regulatory system overseeing it. Insurance commissioners around the country work very hard to analyze rates and to not allow the industry to be damaged by bad rate-settings and changes in coverages. The proper way for people in the industry to deal with such matters is by adhering to the laws, rules, and regulations of the applicable states and within industry associations where such matters may be discussed in private without giving the industry unnecessary black eyes. Ethics is very high on the list in the insurance industry, and we don't want to lose the people's trust. That said, the industry is not perfect; but what industry is?
For our part, we believe in strong regulations and strong regulators.
We welcome your comments and ask you to keep in mind that we cannot and will not reply in any way or ways where any insurance commissioner could rightly say we've violated the law of the given state.
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