March 31, 2025
Embedded insurance is reshaping the rental industry by integrating insurance directly into rental platforms, simplifying processes for tenants and property managers. By 2025, renters insurance penetration is expected to reach 60.4% (up from 53.3% in 2022), adding $700 million in premiums. Here's why this matters:
With tools like APIs and no-code solutions enabling seamless integration, property managers can save time, improve operations, and increase revenue while enhancing tenant satisfaction.
Embedded insurance makes life easier for tenants by bundling coverage directly into the rental process. This eliminates the need for separate insurance applications and payments. For example, the ElevateOS platform, launched in November 2024 in partnership with Cover Genius, provides real-time insurance quotes during onboarding. Tenants can manage policies within the app, covering essentials like renter's insurance, pet insurance, and even security deposit alternatives. This streamlined approach not only simplifies the tenant experience but also helps property managers run things more smoothly.
Property managers often spend hours each week dealing with Certificates of Insurance (COIs). Research shows they typically spend up to 6 hours weekly on COI collection and verification, and about 20% of these documents have errors or missing details [3]. Automated insurance solutions can eliminate these hassles.
| Operational Impact | Traditional Process | With Embedded Insurance |
|---|---|---|
| COI Processing Time | 6 hours/week | Automated |
| Documentation Errors | 20% of COIs | Near-zero with digital verification |
| Administrative Workload | Fully manual | Up to 50% reduction [3] |
| Compliance Tracking | Manual monitoring | Real-time automated tracking |
By automating these tasks, property managers save time and reduce errors, allowing them to focus on higher-value activities.
The embedded insurance market is estimated to grow to $3 trillion [4], opening up new revenue opportunities for property managers:
With 61% of customers opting for embedded protection solutions due to convenience [5], these revenue streams pair well with operational improvements, making embedded insurance a valuable tool for property managers and REITs alike.
These methods enable smooth tenant experiences and streamlined operations, as highlighted earlier.
REST APIs allow rental platforms to manage quoting, binding, and policy administration in real time. Key capabilities include:
For example, TurboTenant saw a 29% increase in conversions after implementing API integration.
For teams with fewer technical resources, no-code solutions can be a practical alternative.
No-code platforms provide a quicker setup compared to APIs, using pre-built components and visual interfaces. These solutions are ideal for teams looking for simplicity and speed.
| Integration Aspect | API Solution | No-Code Solution |
|---|---|---|
| Implementation Time | 2–3 months | 1–2 weeks |
| Technical Requirements | Developer team | Basic technical knowledge |
| Customization Level | High | Limited |
| Maintenance Needs | Regular updates | Managed by provider |
| Real-time Capabilities | Full webhook support | Basic integrations |
The decision between API and no-code solutions depends on several factors:
Selecting the right integration approach ensures you maximize the operational and tenant benefits discussed earlier.
Here are some examples showing how integration strategies can improve rental operations in measurable ways. By leveraging API and no-code tools, these real-world cases demonstrate both operational improvements and revenue gains.
Property management companies have reported:
These results showcase how embedded insurance can simplify workflows, improve compliance, and open up new revenue opportunities. As the property management industry evolves, these examples highlight the growing importance of digital insurance solutions.
The world of embedded insurance is undergoing major changes, driven by technology and shifting market demands.
Advances in AI and automation are reshaping the embedded insurance market. Projections estimate it will grow from $210.90 billion in 2025 to $950.59 billion in 2030, with an annual growth rate of 35.14% [11]. AI tools are enhancing risk assessment and pricing by analyzing tenant behavior and property details. Machine learning is being used to flag suspicious claims instantly, while automated processes are speeding up claims handling and improving accuracy.
Personalized coverage is another game-changer. Property managers can now offer policies tailored to tenants' specific needs. A great example is Root Insurance's collaboration with Carvana, where customer details are automatically prefilled during checkout, making the process seamless [2].
The rental insurance market is broadening its scope, moving beyond traditional leasing to include new segments like vacation rentals and smart homes:
These developments highlight the importance of offering insurance when and where it's needed most [2].
Looking ahead, the focus will be on creating smooth digital experiences. EY predicts that by 2028, over 30% of insurance transactions will be embedded [1]. This signals a clear need for property managers and REITs to evolve with these trends.
Embedded insurance in rentals offers a range of advantages. For instance, property managers and REITs can see revenue per user increase by 2–5x [13]. Baselane also reported cutting customer acquisition costs by 50% [13].
Automated resident enrollment systems ensure full compliance with lease insurance requirements for property managers. To make the most of these benefits, consider following these straightforward implementation steps.
To embed insurance effectively, follow these steps:
Deloitte predicts U.S. embedded property and casualty insurance sales will hit $70 billion by 2030 [12]. They caution:
"playing it safe by not engaging early on could end up being the riskiest move of all for insurers" [12].
