Landlord Insurance: SureVestor Protection Plus
SureVestor Protection Plus is a comprehensive insurance solution tailored specifically for landlords, offering a range of protections that go beyond typical landlord insurance policies. You can only purchase this type of Landlord Insurance through a Professional Property Management Company. Here are the key features of the SureVestor Protection Plus Bundle:
Malicious Damage Coverage: Protects landlords against malicious damage caused by tenants up to $35,000.*
Loss of Rent Guarantee: Provides coverage for lost rent if the property becomes uninhabitable due to covered events
Eviction Cost Coverage: Up to $5,000 in eviction costs including eviction filing fees and eviction defense costs
Double Liability Coverage: Offers up to $1,000,000 in 3rd party liability claims that happen on your property.
What is the eligibility criteria for SureVestor Protection Plus landlord insurance and does every property qualify for coverage?
Tenant occupied properties where the tenant is not current on rent and had not paid rent on time for the previous two months, will not be eligible for the Loss of Rent, Eviction and Tenant Malicious Damage Guarantees until those conditions are met. Coverage is not available on any property that is in a lease only arrangement with the property management company, the monthly rent is below $1000, or that is located within the five boroughs of New York City. All claims will be settled according to the lesser of the rent on the current lease, or up to a maximum per month rent cover of $3000. If the property owner resumes management of the property, the policy is void and you can apply for a pro rata refund.
Malicious Damage Coverage
Malicious Damage presumes intentional, spiteful or vindictive damage carried out by the tenant with the intent to damage the landlord’s property. This may be their reaction to being evicted or perhaps they have had a domestic dispute and lost control so they lashed out against the walls and doors. In most states it is a crime or felony. Children or Pet damage is not covered under the landlord insurance policy with the only exception of a service or companion animal as defined in the policy document.
Examples of Malicious Damage
A tenant removes an internal wall to enlarge a room without landlord permission
The construction of a wall by the tenant without approval
Tenant sets fire to the landlord’s property with the intent to burn the place down
Concrete is poured down the kitchen sink and bathroom drains
Extensive graffiti on the walls
Damage as a result of the tenant being attacked in the property which causes damage
Cupboards being pulled from the walls, doors torn off their hinges
A tenant committing suicide in the property
Punching holes in walls or doors
Gouging of walls or use of a hammer to damage walls
Plugging up the bath and intentionally allowing water to over flow through the property
What is NOT malicious damage?
A red wine spill that stains the carpet
A red wine spill that stains the carpet
When the tenant uses bleach to clean up their mess and it ruins the carpet or floor
A hot iron or cigarette leaves a scorch mark on the carpet
Holes left in walls from the tenants hanging pictures or other decorations
Children drawing on walls or spilling their paints on the carpet
Coals that escape an open fire and leave scorch marks on the carpet
The tenant had a party and the carpets and curtains have had alcohol spilled on them
The tenant had a party and the carpets and curtains have had alcohol spilled on them
Loss of Rent Guarantee
If your tenant has moved out at the end of the lease and it takes a few weeks to release the property that is not considered an insurable risk but rather the risk of doing business in that market. The landlord insurance policy is designed to cover loss of rent as a result of the actions of the tenant, not the market. The Loss of Rent Guarantee includes lease breaks, tenant delinquency when an eviction order has been granted or writ of possession has been obtained, tenant death, the property is untenable due to malicious damage by the tenant to contents or the buildings, or the tenant has been a victim of violence.
Additional Benefits
Beyond the core coverages of tenant malicious damage, loss of rent, and eviction costs, Surevestor Protection Plus often includes several additional benefits to enhance landlord protection:
Malicious Damage Coverage: Protects against intentional damage caused by tenants or their guests.
Theft Coverage: Protection against theft of property from the rental unit.
Lockbox Coverage: Coverage for damages to or loss of lockboxes.
Service Animal Damage: Coverage for damage caused by service or companion animals.
Re-keying Costs: Coverage for re-keying locks after a covered claim.
Increased Liability Coverage: Expanded protection against third-party claims up to $1,000,000
Eviction Defense Costs: Coverage for legal fees if a tenant disputes the eviction.
Sheriff Fees: Reimbursement for sheriff fees associated with the eviction process.
*A deductible of $1500 per event will be applied to all Malicious Damage and Theft Claims.
Arrears at Policy Commencement
For existing tenants, the tenant’s rent payments were in arrears of the rent due date by 6 days or more in the two months immediately prior to policy commencement date. This policy will not pay a claim for loss of rent from any cause, malicious damage, fire, explosion or theft. Once the tenant subsequently brings their rent out of arrears by paying their rent “on time” which means within 5 days of the rent due date (excluding further grace periods) for two consecutive months, this limitation will no longer apply to a future claim.
For new tenants, if the tenant has paid all of their financial obligations prior to moving into the property where a policy already exists, then the above limitation does not apply. When a new policy is taken out just before or at the beginning of a new lease, then provided the new tenant has paid all of their financial obligations prior to moving into the property then the above limitation does not apply. If a new tenant is allowed to move into the property before all of their financial obligations have been met then the above limitation will apply until all obligations are fulfilled.
Rental Criteria
Hendricks Property Management will screen applicants according to our standard criteria. Operationally, should you choose to use the SureVestor Protection Plus Plan landlord insurance policy, there will be no changes to the way we screen applicants. A tenant who does not meet our qualifications will not be approved simply because you have purchased this insurance to mitigate potential losses. Doing so may result in the need to re-lease the property, and repeated claims due to poor tenant selection could result in denial of insurance renewal.
Security Deposits
When something goes wrong, the security deposit usually falls short in covering all of the landlord's out-of-pocket expenses. This is why Landlord Protection Insurance was created—to protect rental income. The security deposit can be used to cover other financial obligations the tenant has under the lease agreement. Hendricks Property Management knows what can be legally deducted from the security deposit during the claim process, and any remaining deposit can help offset rent loss.
Deductibles
A $1,500 deductible applies to claims for Malicious Damage or Theft, except for theft from the lock box, which has no deductible. The tenant's security deposit cannot be used to cover this deductible. For Loss of Rent claims, any remaining balance in the security deposit, after deducting allowable re-leasing costs, will be subtracted from the claim amount.
Property Use Change or Sale
If the property's use changes – such as moving in, listing for sale, or converting to business use – you must immediately notify Hendricks Property Management and request policy cancellation of the landlord insurance policy. SureVestor will then provide a prorated premium refund. Any changes to the property, including extensive renovations or partial business use, must also be reported. This policy exclusively covers residential rental properties managed by Hendricks Property Management. Any other property use will void the coverage. You have an obligation to notify SureVestor of any change including part of the property being used to carry out business or if you are doing extensive maintenance or renovations.
Rekey Coverage
The policy covers the cost of re-keying locks in the event of a covered claim. This re-keying benefit is payable if the tenant acts improperly and poses a risk to the your property. However, the cost of re-keying locks between tenancies, where the lease is completed, and rent obligations are fulfilled, remains an expense for the landlord and is not claimable. Re-keying is a standard business practice between all tenancies, not just those with issues.
Master General Liability Overview
The Master General Liability policy offered by Hendricks Property Management is beneficial for both the landlord and the property manager. This landlord insurance liability coverage applies to the specific property location, protecting both parties from claims that may arise at the property and potentially result in a lawsuit against you and Hendricks Property Management.
General Liability provides protection from lawsuits brought by a 3rd party for alleged bodily injury, property damage, personal injury, and advertising injury. (One common exclusion is fungi or bacteria).
How is this better than your current general liability insurance?
Most dwelling policies will have a liability limit of $300,000 and maybe up to $500,000. This protection extends coverage up to $1,000,000 for both you and Hendricks Property Management. Our Property Management Agreement requires the you to list the Hendricks Property Management as additionally insured. This condition is satisfied through Protection Plus which means one less phone call for you to make when getting your property rental ready.
Tenant Liability Insurance
Tenant Legal Liability coverage protects against accidental tenant damage resulting from fire, smoke, sewer backup or overflow, water damage, and falling objects. The benefit is that the landlord's dwelling policy doesn't have to respond, avoiding the need for the landlord to pay a deductible and seek reimbursement from the tenant. Additionally, this coverage helps prevent potential increases in the dwelling policy premium upon renewal or the risk of the policy not being renewed at all. Hendricks Property Management’s tenants are required to have tenant liability insurance.
Conclusion
SureVestor Protection Plus stands out as an all-encompassing insurance solution designed to address the unique needs for landlord insurance. Its extensive coverage options provide a broad safety net that goes beyond typical landlord insurance policies. By partnering exclusively with Hendricks Property Management, this policy ensures that landlords are shielded from various risks associated with tenant-related issues, offers peace of mind, and financial security. The benefits make it a vital component for any landlord looking to protect their rental income and property investment.
