Insurance broker Next Wave Insurance Services and industry veteran Aaron DiCaprio have collaborated to launch Rent Rescue, a rent default insurance product for real estate investors and property managers.
Rent default insurance reimburses property owners for up to six months for their lost rental income if a tenant defaults. Rent Rescue’s coverage also repays certain legal expenses associated with a default.
According to DiCaprio, co-founder and CEO of Rent Rescue who was formerly with Aon Affinity, the product helps protect the cash flow of residential investors with just one or two units all the way up to property owners with thousands of units.
Landlords typically rely on a combination of security deposits and tenant screening to protect their income but Rent Rescue offers landlords here in the U.S. a way to insure the risk of default just as they do against fire, flood, liability and other property-threatening risks, he added.
Rent default insurance is available for single-family homes, townhomes, condo units and multi-family dwellings. Average monthly cost is $25 per unit. Property owners and property managers (on behalf of owners) can apply for coverage.
The online application process requires the rental property address and monthly rent amount, and answers to a handful of tenant selection questions. Claims also are handled online.
Rent Rescue is a division of Next Wave Insurance Services, an insurance brokerage and program administrator. The coverage is available in all U.S. states except Kentucky.
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