Default Insurance

Available only for properties managed by Blackstone Management, LLC

    Minimize Your Exposure…and Headaches

    When a tenant defaults on his or her rent, it can take months for a property owner or landlord to regain your property and get another tenant into the space. Meanwhile, you’re continuing to make mortgage payments and incur additional expenses on the property while losing rental income.

    At Blackstone Management,  we understand that you rely on consistent rent payments from your tenants to maintain your investment and keep your cash flowing. That’s why we offer our exclusive Rent Default insurance: It’s designed to reimburse landlords for loss of rental income due to tenant default.

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    How Rent Default Insurance Works

    Rent Default coverage is landlord protection insurance protecting you from financial drain due to unpaid rent.

    Our policy includes:

    • Up to 6 months reimbursement of lost rent when tenant default is due to non pays including skips or eviction
    • Up to 3 months reimbursement of lost rent when the default is due to a court order, military deployment, or the death of a sole tenant
    • Payment of $1,000 of legal expenses (attorney fees, court costs) to pursue eviction
    • Deductible: one month’s rent
    • Policy term: the term of your lease with the tenant but no longer than 12 months

    Coverage is available at an average annual premium of $300 per unit (that’s $25/month!), which can often be passed along to the tenant as a nominal increase to the monthly rent, or taken as a tax deduction (consult your accountant or tax attorney to see if you qualify).

    Eligible properties include:

    • Single-family homes, townhomes, condos, and multi-family dwellings (i.e., long-term rentals)
    • Tailored solutions are available for landlords with over 20 units
    • Available nationally except in Kentucky and Alaska

    Not Eligible for Coverage:

    • No coverage for property damage or liability: traditional property and casualty insurance plans provide coverage for loss of rent resulting from physical damage exposures such as fire or hurricane, but they do not address the risk of tenant default
    • No coverage for vacation, seasonal or short-term rental units
    • No coverage when a tenant temporarily vacates the unit because it’s uninhabitable

    How Does A Landlord Qualify for Rent Default Coverage?

    To qualify, a landlord’s tenant must meet the following criteria:

    • No bankruptcies or evictions during the last 5 years
    • No rent currently in arrears or that has been in arrears for 30+ consecutive days during the last 12 months
    • The tenant must be able to satisfy the financial terms of the lease

    Protect Your Investment

    We understand that you rely on consistent rent payments from your tenants to maintain your investment and keep your cash flowing. Rent Default insurance reimburses landlords for loss of rental income due to tenant default.

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    Resources

    Default Insurance FAQs

    Rent Default Insurance that reimburses a landlord their lost rental income when a tenant defaults. It also reimburses a landlord for certain legal expenses associated with the default.

    Yes; the policy will pay up to $1,000 to cover your reasonable expenses (court costs and fees relating to service of process and hiring an attorney) to lawfully remove a tenant from the unit.

    Your policy is triggered on the date that rental income becomes in arrears for a particular rental unit or in the case of the death of the sole tenant of the rental unit the date that the first payment would have been due after the death of the tenant.

    Your premium is based on your unit’s monthly rental income.

    Not at this time though we’re working on including this coverage in the near future.

    The policy pays up to 6 months reimbursement when a tenant default is due to abandonment or eviction and up to 3 months when a tenant vacates the unit due to court order, military status, or their own death.

    Yes; so long as the lease term is for at least 12 months.

    • You need to warrant that your tenant hasn’t been evicted or filed for bankruptcy in the last 5 years
    • hasn’t had any rent in arrears for 30+ consecutive days during the last 12 months and can satisfy the financial terms of the lease
      If those criteria are met, then you can purchase our rent default insurance.

    Yes. We require all eligible units at a location to be covered. However, we realize there are unique circumstances and happy to discuss them with you. Contact Us to discuss your situation.

    The most we’ll pay in a given month will be $5,000 per unit unless we’ve made an exception and agreed to a different amount.

    No; you only need to verify that the new tenant(s) meets our qualification criteria.

    Yes; however, the policy premium is fully earned which means you won’t be refunded any premium.

    There’s no catch. Blackstone Management identified a real stress point for many landlords and now has a solution.

    Rent default insurance is a relatively new concept here in the United States though it’s been widely available abroad in the UK and Australia for years. Like many products, it just takes time to implement and catch on in certain markets.

    Contact Blackstone Management to submit a claim.

    Payment is made to you on a month-to-month basis per the terms of your insurance policy.

    Many landlords deduct a portion of the insurance premium. We suggest you contact your accountant or tax attorney to see if you can do the same.

    Your claims will be paid by our insurance company partner.

    The policy pays up to 6 months reimbursement when a tenant default is due to abandonment or eviction and up to 3 months when a tenant vacates the unit due to court order, military status, or their own death.

    Blackstone Management rent default insurance is for single-family homes, townhomes, condo units, and multifamily dwellings.

    You as the landlord pay the premium. Many landlords pass along this nominal cost to the tenant or take it as a tax deduction*. *Please consult your accountant or tax attorney to see if you can do the same.

    No; it’s strictly for rent default.

    Yes, the deductible is equal to one month’s rent.

    No; those types of investment properties don’t qualify for coverage. Rent Rescue is tailored for single-family homes, townhomes, condo units, and multifamily dwellings.

    Yes; so long as our criteria have been met.

    Yes; so long as our underwriting criteria is met.

    There will be one policy issued per state.

    The insurance policy covers the term of your lease with the tenant but no longer than 12 months. You’ll need to renew your policy once it expires on the date shown in your policy’s declarations.

    Yes, you can use your dashboard to make this change. We’ll charge you a pro-rated premium for that new unit to be added to your policy.

    Yes. You can purchase a policy for those qualifying units.

    Probably not as rent default insurance is a new product to the US market. With that said, please check your existing coverage for confirmation.

    Your policy is triggered on the date that rental income becomes in arrears for a particular rental unit or in the case of the death of the sole tenant of the rental unit the date that the first payment would have been due after the death of the tenant. You can submit your claim once either of these events occurs and must also take all steps legally available to remedy the nonpayment of rent and re-lease the unit in a timely manner.

    The policy pays up to 6 months reimbursement when a tenant default is due to abandonment or eviction and up to 3 months when a tenant vacates the unit due to court order, military status or their own death.

    Your reimbursement will be sent to you within 30 days after we receive all of the necessary paperwork and provided you complied with all of the terms of the insurance policy.

    Once you buy the insurance you won’t get a refund if you cancel it. All sales are final. This refund policy is very typical with certain specialty insurance products like ours.

    Absolutely! Being non-admitted gives us the flexibility to quickly change coverage and rates to meet the evolving needs of landlords without any prolonged delays which can be encountered when dealing with many state agencies such as departments of insurance.