Rent default insurance has been available in the United Kingdom and Australia for decades, but prior to Rent Rescue it had gone largely ignored by the U.S. insurance industry.
DiCaprio, co-founder and CEO of Rent Rescue, says, "Rent Rescue 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."
Rent default insurance reimburses property owners for up to six months for their lost rental income when a tenant defaults. Rent Rescue's coverage also repays certain legal expenses associated with a default.
Residential rental real estate is a growing market: Between 2006 and 2016, the number of single-family homes available for rent increased by nearly 4 million, lifting the total to 18.2 million in the U.S., according to the Joint Center for Housing Studies of Harvard University.
Until now, landlords have relied on a combination of security deposits and tenant screening to protect their income, which is often unreliable, says DiCaprio. "Now, landlords here in the U.S. finally have a solution to this headache, just like they can insure against fire, flood, liability and other property-threatening risks. In fact, it's possible for property owners to erase the bad-debt expense from their property's financial statements."
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.
"Property managers can create a new revenue stream by bundling rent-default insurance into their service offering," says DiCaprio.
The online application process is simple: Provide the rental property address and monthly rent amount, and answer a handful of tenant selection questions. Claims also are handled online.
About Rent Rescue:
Rent Rescue offers rent default insurance through one of the largest insurance groups in the world rated "A" by A.M. Best and "A+" by Standard & Poor's. Rent Rescue is a division of Next Wave Insurance Services LLC, an insurance brokerage and program administrator. Rent Rescue's tenant-default insurance is available in all U.S. states except Kentucky. For more information, visit RentRescue.com.