Hub International Ltd. said Thursday that it has developed a standard tenant insurance program for landlords that replaces traditional security deposits.
The program, available in the United States and in Canada next year, covers landlords for loss of rent, damage to individual units and apartments and legal costs involving evictions, Hub said.
The program is available to property owners, operators and managers of multifamily, commercial and other residential properties with at least 500 units and is underwritten by AssureLease LLC.
In a typical program, the tenant pays a premium, a 1-2% addition to the rent based on issuance, instead of a security deposit.
The program does not limit the landlord̵7;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 directly to the property owner’s bottom line, Hub said in a statement.
All premium rates are subject to review and binding approval by the captive manager.