Rent default and legal expenses insurance

8 Replies

Interesting insurance coverage..............COVID has been declared a natural disaster, which this company says they do not cover in their exclusions. Can't blame them for that..........but there are not a lot of things these days that are not related to COVID. Lots of other things in the fine print-that applies to all insurance. Hopefully more will get posted on here.

Hi Bjorn - the company has been paying claims throughout Covid, so I don't think that is in fact true. I'd reach out to them directly for confirmation.

Thanks, John. Steadyplacs offers rent default insurance. It is about $500 for 2 month coverage. Not sure if it's worth it. We can ask for a 2 month deposit instead. Still concerned about the legal expenses. How do you protect yourself?

First, do a rock star job of selecting tenants. 80% of your problems are avoided by not letting in the wrong people.

Second, get proper insurance. Landlord policy and umbrella.

Last and most interestingly, there are a couple insurance companies for default coverage out there. After digging deep into the details we decided to focus on collecting higher "deposits." Instead of cash deposits we use Rhino insurance. Tenant pays a small premium based off their credit score. We can collect a much higher coverage than a typical deposit and we move properties faster.

Hope this helps.