Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

The Money In Tenant Insurance Simple Math Breakdown

10 Mar 2026 · 1 min

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0:33

In this brief presentation, the speaker outlines the profitability of tenant insurance by breaking down the unit economics. Assuming a monthly premium of roughly $12 per tenant, the retained margin after costs is estimated at $6‑$8, with $8 used as an example. Scaling this margin across 100 rental units yields $800 in monthly profit, or $9,600 annually. The speaker then suggests applying a capitalization (cap) rate to this cash flow to illustrate the investment attractiveness of tenant insurance, framing it as a high‑margin, cash‑generating opportunity.

All right, let's look at the math because there's money, money, money, money in tenant insurance. And it's not just about protection, it's about profit. For every, let's say, $10, $12 a tenant pays monthly, you might keep $8, $6 to $8 depending on your plan. So let's say $12, you're keeping $8. That's a significant margin. Imagine you have 100 units. That's $800 in monthly profit, $9,600 a year. Put a cap rate on that. Now tell me how smart this is.