Hub offers tenant default captive program
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Hub International Ltd. said Thursday it has developed a tenant default captive insurance program for landlords that replaces traditional security deposits.
The program, which is available in the U.S., and in Canada next year, covers landlords for loss of rent, damage to individual units and apartments and legal expenses involving eviction, Hub said.
The program is available to real estate owners, operators and managers of multifamily properties, commercial space, and other housing with a minimum of 500 units and is underwritten by AssureLease LLC.
In a typical program, the tenant pays a premium, a 1-2% add-on to rent based on underwriting, in lieu of a security deposit.
The program does not limit the landlord’s recovery to the typical first and last month’s rent. The captive could pay the entire loss with available funds while any leftover collected premiums would go straight to the property owner’s bottom line, Hub said in a statement.
All premium quotes are subject to review and binding authorization by the captive manager.
