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Rental Protection Coverage

  • Updated

What you'll learn in this article:

 

Is Rental Protection coverage provided per unit or per renter?

Coverage is provided per unit. Coverage for each unit must be requested separately and is subject to insurer approval. Rental Protection cannot be purchased for a single room-for-rent within a rental unit - it covers the rental unit.

 

Does Rental Protection cover the renter’s monthly payments beyond the rent amount, such as parking or utilities?

“Rent” includes the base monthly amount for rent, late fees, termination fees, utility fees, parking fees, and any other fees owed by the renter to the landlord during the term of the lease.

Coverage for any claim will depend on the specific obligations, conditions, and exclusions in the policy. Please read your policy carefully.

 

Is there a limit on how many properties or renters I can request Rental Protection for?

No. You can request a separate Rental Protection policy for any number of properties, as long as the properties are in a state where Rental Protection is available, and the renter(s) for each unit meets the income eligibility requirements.

 

Does Rental Protection cover the renter’s belongings?

No. The renter would need to purchase renter’s insurance to protect their belongings.

 

Does Rental Protection include coverage for legal fees for eviction proceedings?

Costs of eviction, such as lawyer fees, filing fees or other eviction-related costs, may be included in your claim along with any losses you may have for missed rent or physical damage to the unit. The coverage limit you chose will apply to all covered losses combined.

 

How do I choose my coverage amount?

Rental Protection is available in two coverage levels: (1) $5,000 coverage limit for a $39/month premium or (2) $10,000 coverage limit for a $59/month premium. (*plus applicable surplus lines taxes and fees)

Both options offer the same type of coverage, the only difference is in the coverage limit and monthly cost.  

When considering which coverage limit to select, you may want to consider factors such as:

  • Monthly rent: consider your rent amount and how many months of rent you want to account for. You may want to consider a higher coverage limit if you have higher monthly rent or want to be prepared for several months of missed payments 
  • Pets: consider potential sources of property damage your tenant may cause. For example, if your tenant is moving in with pets, you may want to consider a higher coverage limit 
  • Security deposit: If you’re waiving or reducing your security deposit, you may want to make sure your coverage limit equals at least your typical security deposit amount. If you’re collecting your typical security deposit amount, a lower coverage limit may be appropriate. 

You can change your coverage level at any time up to coverage request signing. Once you sign your coverage request, you will no longer be able to change your coverage level.

 

Which rental properties are eligible for Rental Protection?

Rental Protection is only offered in Arizona, Colorado, and North Carolina at this time. As long as the unit is not mobile, most home types are eligible, including houses, apartments, condos, and other residential rental units.

 

What if my renter doesn’t move in?

Any loss caused by the failure of the renter to take legal possession of the unit on or shortly after the lease start date will be excluded from coverage. What constitutes legal possession may vary based on state or local law, but criteria may include: the unit is free of squatters and your renter has keys to the unit, has moved possessions into the unit, or is physically residing in the unit.

 

Can I submit a claim for renter default if I waive or reduce the renter’s rent?

Coverage doesn’t apply to any rent amount you waive, reduce, or forgive.

See more information about missed rent. 

Coverage for any claim will depend on the specific obligations, conditions, and exclusions in the policy. 

 

What if missed rent or damage is caused by a renter that has died, become disabled, incarcerated, or been deployed for military services?

If the renter is still legally obligated to pay rent under these circumstances, then coverage should apply (subject to all other policy terms and conditions).

 

Is it possible to purchase more or less coverage?

Not at this time. The only coverage limit currently available is $5,000. 

Proposed: Rental Protection is available in two coverage levels: (1) $5,000 coverage limit for a $45/month premium or (2) $10,000 coverage limit for a $58/month premium.

Both options offer the same type of coverage, the only difference is in the coverage limit and monthly cost.  You can change your coverage level at any time up to coverage request signing. Once you sign your coverage request, you will no longer be able to change your coverage level.

 

When does the coverage period end?

The coverage period for a unit under Rental Protection begins on the effective date of the lease and ends on the expiration date of the lease, unless it ends sooner, under the terms of the policy. 

The coverage period ends before the expiration date of the lease once you notify the insurer that one of these scenarios has occurred: 

  • You’ve regained legal and physical possession of the unit
  • The unit is sub-leased or assigned
  • The terms of the lease are materially changed (other than by a payment plan)
  • The renter has transferred to another unit 

The coverage period may also end early if the policy is canceled by either the insured or the insurer. For example, the insurer may cancel the policy with 10 days written notice for non-payment of premium.  

Once a repossession event or cancellation occurs, you also have to take certain steps. See more about this process

You must file a claim to the insurer within 120 days after the coverage period ends.

 

What happens if my tenant makes a monthly rent payment offline?

In order for your policy to activate, your tenant must make at least one monthly rent payment on Zillow’s payments tool within 60 days of lease start date.

Once the policy is activated, your tenant may make monthly rent payments outside the Zillow payments tool without impacting your coverage, so long as you have an active Zillow payment term. If your payment term lapses, your policy will be canceled. Please note, if your tenant does pay rent offline, you should keep proof of payment to submit to LeaseLock at claim time.

 

Can I renew my Rental Protection coverage?

Yes, you are able to renew your Rental Protection coverage. When you renew your coverage, your coverage will automatically be extended month-to-month for up to 12 months, but you can cancel at any time. You will keep your existing coverage and your monthly premium will not change. 

In order to renew your coverage, the following requirements must be met:

  • You are extending your existing lease month-to-month. You are not creating a new lease.
  • The tenants on your lease are remaining the same

If these two requirements are not met, you will need to start a new Rental Protection policy request. 

It’s important you keep a record of any new lease documents in case you are asked for this documentation at claim time.

You will have the ability to renew your coverage from your Manage Policy dashboard 60 days before your coverage period ends. Once your coverage expires, you will no longer have the option to renew coverage.

 

What happens to my coverage if my tenant refuses to leave at the end of the lease term?

Your coverage ends when your coverage period ends, unless you extend your coverage through your Manage Policy page. You can extend your coverage for up to 12-months, so long as you continue to pay monthly premium. 

All policy terms will remain in force, including any obligations related to unpaid rent, efforts to repossess, and claim documentation.

 

General Disclaimer
Coverage is subject to policy terms, limitations, conditions, and exclusions. Descriptions of coverage are for informational purposes only and do not alter any insurance policy or guarantee any specific price, quote or coverage. For a complete understanding of the coverage available, please review the terms, conditions, definitions, and exclusions of your Rental Protection insurance policy.

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