Company: APPF
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001433195-25-000105
Chunk: 47

Company: APPFOLIO INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 47
---
2025December 31,2024Accrued bonuses$14,745 $17,092 Accrued payroll and other11,039 13,065     Total accrued employee expenses$25,784 $30,157 

5. Other Current Liabilities

Other Current Liabilities consisted of the following (in thousands): June 30,2025December 31,2024Unearned premium liabilities$6,140 $5,455 Insurance reserves4,741 3,908 Operating lease liabilities-current4,466 4,273 Other5,101 2,451     Total other current liabilities$20,448 $16,087 Unearned premium liabilities are the refundable portion of commissions received in connection with the sale of renters insurance policies to residents through AppFolio Insurance Services, Inc., our wholly owned subsidiary. In the event a resident cancels their renters insurance policy prior to the end of such policy, we may be required to refund a pro rata portion of the commission paid on such policy.For additional information for insurance reserves, refer to Note 6, Commitments and Contingencies.

 6. Commitments and Contingencies

Legal Liability to Landlord InsuranceWe have a wholly owned subsidiary, Terra Mar Insurance Company, Inc., which was established in connection with reinsuring liability to landlord insurance policies offered to our customers by our third-party service provider. We assume a 100% quota share of the liability to landlord insurance policies placed with our customers by our third-party service provider. We accrue for reported claims, and include an estimate of losses incurred but not reported by our property manager customers, in cost of revenue because we bear the risk related to all such claims. Our estimated liability for reported claims and incurred but not reported claims as of June 30, 2025 and December 31, 2024 was $4.7 million and $3.9 million, respectively, and is included in Other current liabilities on our Condensed Consolidated Balance Sheets.Included in Prepaid expenses and other current assets as of June 30, 2025 and December 31, 2024 are $4.3 million and $6.7 million, respectively, of deposits held with a third party related to requirements to maintain collateral for this insurance service.Legal Proceedings From time to time, we are involved in various investigative inquiries, legal proceedings and disputes arising from or related to matters incident to the ordinary course of our business activities, including actions with