What You Need to Know About Our Tenant Protector Plan?

Do you require your tenants to carry renters insurance in your lease? Do you enforce it? Your tenants can go out in the open insurance market and purchase an annual renters insurance policy by paying a couple months of premium upfront. So, what happens when money is tight and they fail to make their monthly renters insurance payment? Unless you are listed as Additional Interest on their coverage or follow up with their insurance agent monthly to confirm their coverage is in good standing, you’ll have no way of knowing when it lapses. It will never fail, the tenant-caused loss that damages your property will almost always happen when their coverage has lapsed.?

To minimize your exposure and simplify your insurance processes, NREIG developed the Tenant Protector Plan? (TPP). This is our cost-effective way to offer an alternative to renters insurance. We do this by working directly with you to secure coverage, guaranteeing the policy is in force when you need it. For substantially less than what a renters policy would cost your tenant to purchase on their own, we can include the Tenant Protector Plan on some or all of your occupied locations.?

What coverage does the Tenant Protector Plan provide?

Limit of Liability for Tenant-Caused Negligent Losses

Unfortunately, these types of losses account for more than half of property losses in the commercial insurance industry. Consider a tenant who starts cooking something in the oven but falls asleep, resulting in a kitchen fire. Or a tenant who forgets to blow out the candle they lit before going to bed, causing a disastrous living room fire that spreads to other areas of the house. Your property insurance will step in and make you whole again, but in doing so, may decide to increase your insurance costs over time, although you yourself have done nothing wrong. Our Tenant Protector Plan transfers the responsibility for these losses to the negligent party and reimburses your property carrier (up to your limit of liability) for what they paid out for these tenant-caused losses. This goes a long way in helping to manage your loss history, avoid cost increases, and stabilize property insurance rates over time. Covered causes of loss include Fire, Explosion, and Smoke.?

Contents Coverage

The Tenant Protector Plan also includes a $10,000 sublimit for your tenant’s contents. Imagine lightning strikes one of your investment properties, causing a house fire that burns two rooms and everything in them. Your property coverage does not provide any coverage for your tenant’s personal belongings (e.g., furniture, clothing, etc.), they must have a renters policy to have coverage for their lost items. This included sublimit will help them replace those lost items. ?

This also includes a $2,500 contents sublimit for non-negligent tenants. Let’s say you own a fourplex, you get a call that tenant A left the stove on, fell asleep, and caused a kitchen fire. The fire department was called to put out the fire, but in doing so, caused water damage to units B and C. This sublimit would pay tenants B and C to replace their damaged belongings. (This coverage carries a $7,500 aggregate limit per loss.)

Covered causes of loss for Contents Coverage includes Fire, Explosion, Smoke, Sewer & Drain Backup, and Wind/Hail.

Skip Rent Coverage

The Tenant Protector Plan provides a $1,000 sublimit for Skip Rent. It is not uncommon for investors to have a tenant skip out on them midway through the lease. While you’re scrambling to find another tenant to replace that rental income, wouldn’t it be nice to know you have insurance coverage that would reimburse you for at least some of that lost rental income? This coverage may also be triggered by other types of unexpected vacancies like finalized eviction, military deployment, and untimely death.