Hub introduces solution to eliminate rent security deposits
HUB International has developed Hub Tenant Default Captive Insurance, a landlord-controlled insurance captive program that replaces traditional security deposits.
Currently available in the US and coming to Canada in 2023, the new offering requires a tenant to pay a premium (1-2% add-on to rent – based on underwriting) in lieu of a security deposit, and the program covers loss of rent, damage to individual unit/apartment, and legal expenses involving eviction. The program creates an additional revenue stream for property owners by enabling them to retain excess premiums.
The program is underwritten by AssureLease and available to properties with a minimum of 500 units.
“Most landlords’ number one concern is receiving rent payments on time. When a tenant defaults, it can take months for landlords to regain their property and get another tenant into the space. Our innovative solution, HUB Tenant Default Captive Insurance, acts as a safety net to protect our clients’ assets, improve financial outcomes and mitigate unforeseen loss.” – James “Chip” Stuart, HUB’s Real Estate Specialty Practice leader.