What you'll learn in this article:
- What if the renter gets a pet mid-lease and pays a deposit after the effective date of the lease?
- If I collect a deposit from my renter, how does the deposit affect my coverage?
- If I collect the last month's rent from my renter before move-in, will that be considered a deposit?
What if the renter gets a pet mid-lease and pays a deposit after the effective date of the lease?
Any changes made mid-lease won’t be communicated to LeaseLock automatically. You’ll need to provide LeaseLock with the most current version of the lease when you file a claim.
If I collect a deposit from my renter, how does the deposit affect my coverage?
If you decide to collect a deposit, your Rental Protection coverage will only apply to covered loss that exceeds the amount of the deposit you collect.
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Example A: If a landlord collects $1,000 in deposit and the renter causes covered damage that adds up to $4,500, and the landlord has up to $5,000 of coverage under Rental Protection, Rental Protection will cover up to $3,500 of the claim.
- Covered Loss ($4,500) - Deposit Amount ($1,000) = Loss Payment (up to $3,500)
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Example B: If a landlord collects $2,000 in deposit and their renter causes covered damage that adds up to $4,000, plus covered renter default that adds up to $3,500, Rental Protection will cover up to the maximum coverage amount of $5,000.
- Covered Loss ($4,000 + $3,500 = $7,500) - Deposit Amount ($2,000) = Loss Payment (up to $5,000)
These examples are for illustrative purposes only. Coverage for any claim will depend on the specific obligations, conditions, and exclusions in the policy.
If I collect the last month's rent from my renter before move-in, will that be considered a deposit?
Yes, any payment you require from the renter to cover the potential for unpaid rent or physical damage to the unit will be treated as a deposit under Rental Protection.
If you decide to collect a deposit, the amount covered under Rental Protection will be reduced by the amount of the deposit.
If you file a claim, you will need to let LeaseLock know whether prepaid rent included in the deposit was actually applied to a monthly rent payment owed during the lease term so it’s not deducted from other amounts covered under the policy. If you collected your move-in costs or first month's rent outside of the Zillow payments tool, you may be asked to provide documentation regarding this payment when you file a claim.
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.