Aon has partnered with QBE Insurance Group to offer a product that will reimburse U.S. landlords for lost incomes when tenants default on rent payments.
“Rent default coverage has been sold overseas for years, but has not been available in the U.S. until now,” said Kevin Madden, managing director of the Real Estate practice at Aon Risk Solutions.
Traditional property and casualty insurance for landlords provides coverage for lost rent due to physical damage exposures but does not address tenant default. The new product, called Aon Rent Protect, will address all sectors of the residential rental property market.
Aon Rent Protect is already available for individual property owners in California, Colorado, D.C. and Pennsylvania. The company plans to expand to the entire United States soon. The product will be available to individual property owners through Aon Affinity.
Premiums start at $250 per rental unit. Rental replacement income protection is available for up to six months, as well as assistance with legal expenses.
The product is already available across the country for large property investment firms. Aon Risk Solutions will provide the product to these insureds.
Chicago-based Aon and Australia-based QBE have provided tenant rent default insurance in Australia, the UK and New Zealand for the past 20 years.