Program Overview

Please note that COVID-19 related claims are not covered.

Commercial Real Estate Rent Default Insurance (CRERDI®) coverage is a unique product and no similar product is available in the US.

Rent defaults have become one of the biggest problems facing both small and large property owners alike.

Whether tenant's delinquency is related to a change in industry conditions, overexpansion, an unanticipated event which causes the tenant's business to suffer, or a downturn economy where it becomes no longer financially viable for a commercial tenant to continue its operations at the leased property and faces the prospect of defaulting on the lease, financial impact can be severe when a tenant default.

The property owner suffers an immediate loss of income until the tenant is evicted and the property released, and it can take months to find a replacement or evict a tenant.

Property owners also face significant legal expenses - all while having to maintain mortgage and property tax payments.

Protect your renatl income with Commercial Real Estate Rent Default Insurance

What is Commercial Real Estate Rent Default Insurance?

Commercial Real Estate Rent Default Insurance (CRERDI®) is a risk transfer vehicle for property owners who are heavily reliant on consistent rent payments from their tenants to maintain their investment.

Policy pays up to six months of lost net rent, allowing property owners to start the eviction process without giving up 100% of the rental income, as well as reimbursements of legal expenses associated with the eviction process.

The policy can also provide reimbursement for the tenant's leasehold improvements once the tenant is removed.

Commercial Real Estate Rent Default Insurance (CRERDI®) is available in all 50 states!

Protect your renatl income with Commercial Real Estate Rent Default Insurance

Coverage highlights

  • Reimbursements of net rental income replacement of 50% or 70% to the maximum of 6 (six) months.
  • Reimbursements of attorney's fees and court fees to the maximum of $500.
  • Reimbursements of up to 50% of the outstanding tenant's leasehold improvements. Tenant's leasehold improvements is offered as an endorsement
  • Affordable coverage. Minimum annual premium as low as $850 for 50% coinsurance, and $1,150 for 70% coinsurance.
  • Policy issued to property owner - property owners are the first named insured.
  • A gap insurance coverage that minimize the financial losses, to protect the property owner's rental revenue stream.
  • Policy trigger is eviction by filing an unlawful detainer, due to non-payment of rent.
  • Multiple properties under one policy.
  • Multiple units per property.
  • Periodic leases (month to month). Initial tenancy must be at least 6 months, excluding new tenancy.
  • Annual policy.
  • Additional insureds. Financial assignee to protect others.
  • 30 days tail (window).
  • Rent default aggregate limit per covered unit to the maximum of $50,000.
  • Tenant's leasehold improvements, an additional aggregate limit per covered unit to the maximum of $50,000.
  • Coverage provided by a non-admitted A.M. Best A+ (Superior) rated carrier.
  • Coverage is available in all 50 states.
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Telephone
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E Golomb Insurance Services, Inc. California Department of Insurance License #0K87539 | Property & Casualty Broker/Agent and Surplus Lines Broker.
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