HUB Tenant Default Captive Insurance
HUB Tenant Default Captive Insurance
A better alternative to security deposits.
Replace security deposits. Protect against loss. Increase profitability.
Imagine if you could transform your security deposit administration from a cost center to a potential profit center. You can with HUB. Our owner-controlled captive insurance program enables you to retain up to 50% of tenant paid premiums year-over-year.
HUB Tenant Default Captive Insurance is a landlord-controlled program that replaces traditional security deposits. Each participating landlord within the captive gets their own unique program.
Replace the need for security deposits and provide enhanced protection against tenant defaults across your entire portfolio.
Coverage Details
- Landlord notifies tenants that security deposits will be returned at lease end in exchange for small rent increase (typically 1-2%, depending on the property portfolio’s past loss history relating to tenant default).
- Premiums are entirely tenant paid and collected as part of the monthly rent.
- Captive-owned insurance covers tenant-caused damage, loss of rents, cost of eviction and legal expenses.
- Limit (per tenant) in the policy is generally two to three times the monthly lease amount.
- No more headaches associated with collection and management of security deposits.
- Reduces financial barriers to entry for prospective tenants, thereby boosting occupancy rates.
- Spreads the risk of loss over all tenants, mitigating the negative impact of a minority of defaulting tenants exceeding deposits held.
- Annual dividend distribution possible once expenses and claims have been accounted for.
Contact a HUB real estate insurance broker and request a quote for Tenant Default Captive Insurance.
HUB Tenant Default Captive Insurance is available in the US and Canada to properties with at least 500 units. The program is underwritten by AssureLease LLC, a pioneer in tenant security deposit alternatives.