FAQs

Home > Brokers and Relocation Specialists > FAQs for Brokers and Relocation Specialists

What is the Insurent® Lease Guaranty Program?
The Insurent® Lease Guaranty Program was established to be the first and leading provider of institutional guarantees on residential leases. The Insurent® Lease Guaranty Program fulfills the need for a guarantor/co-signer when a landlord requires that a tenant have a guarantor or requires significant additional security or prepaid rent by the tenant in order to obtain an apartment.

Who is the Insurer of the Insurent® Lease Guaranty Program?
The Insurent® Lease Residual Value Policy is underwritten and issued by CastlePoint Insurance Company, a property and casualty insurance company licensed in New York and other states. CastlePoint Insurance Company is rated A- (excellent) by A.M. Best, and is located at 120 Broadway, 30th Floor, New York, NY 10271-3099.

How much is the residual value fee for the Insurent® Lease Guaranty?
If your client is approved, the one-time residual value fee (guaranty fee) will range from 4.75 percent to 11 percent of the annual rent. On average, the fee for U.S. parties will approximate 75% of a month's rent. Average fees for non U.S. parties without U.S. based credit history will approximate 110% of a month’s rent Your client’s specific fee will depend upon the outcome of a review of your client’s credit and financial condition, and previous rental history. Applicants pay the residual value fee prior to or simultaneously with the execution of the lease agreement. Upon payment of the guaranty fee and execution of the lease, the lease will be covered under the Insurent® Lease Guaranty Program.

Who pays for the Insurent® Lease Guaranty?
The renter pays for the Insurent® Lease Guaranty. The renter pays a one-time fee ranging from 4.75 percent to 11.0 percent of the annual rent prior to the execution of the rental lease agreement with the landlord. Upon payment of the lease guaranty fee, coverage is initiated for the landlord.

Under what circumstances would my client need the Insurent® Lease Guaranty?
The Insurent® Lease Guaranty Program, where available, may help your client when he or she does not meet the financial criteria required by landlords. Prospective renters who may fall into this category include graduating college students and professional school students entering the workforce; creditworthy employed non-U.S. residents; self-employed persons; relocating persons; and retired creditworthy individuals. The Insurent® Lease Guaranty typically may be used in any instance where a landlord would require the renter to have a third-party guaranty on a lease (e.g., a co-signer or guarantor). A lease guaranty may also be helpful when a landlord requires additional security or prepayment of rent as an alternative to, or in addition to, a co-signer or guarantor.

When is the Insurent® Lease Guaranty issued to the Landlord?
Sole Applicants: The Insurent® Lease Guaranty will be issued to the landlord when your client has executed the Tenant Participation Agreement, paid the guaranty fee, and signed the lease agreement.

If your client has not yet found an apartment, he or she can apply for a policy in advance and receive an Insurent® Qualification Certificate. He or she can show this Insurent® Qualification Certificate to landlords. Following receipt of your client’s application and required documentation, Insurent® will verify your client’s application information and references. Then, following your client’s payment of the residual value fee, and execution of the lease, the Insurent® Lease Guaranty will be issued to the landlord.

Co-Applicants: If you clients will be sharing a lease, they may apply for an Insurent® Lease Guaranty. If all the co-tenants qualify, Insurent® will issue one Insurent® Qualification Certificate, verify each tenant's application information and references before issuing a lease guaranty to the landlord.

What is the duration of the Insurent® Lease Guaranty?
The Insurent® Lease Guaranty Program primarily covers one year leases. Additional lease terms of one year plus a partial month are covered provided that the prorated monthly rent for the partial month is collected with the first month's rent at the inception of the lease. Additionally, lease terms of up to fifteen months are covered where no monthly rent of up to three months will be charged, provided that the free rent period occurs at the end of the lease term.

Are there any additional charges to my client under the Insurent® Lease Guaranty, other than the residual value fee?
No. The Insurent® Lease Guaranty does not require your client to pay any additional fees.

Can my client use the Insurent® Lease Guaranty for any apartment?
The Insurent® Lease Guaranty will only apply to apartments located in Insurent®-certified buildings. You can search the Insurent® database of certified buildings. Insurent® is continuously expanding its base of certified buildings. In the event that a building you are interested in is not currently in our database, please notify Insurent® by email to landlord-info@insurent.com, and we will contact the building owner to determine when (and if) the building can be certified.

What does my client do if his or her chosen apartment is not located in an Insurent®-certified building?
If your client wants to rent an apartment in a building that has not yet been certified by Insurent®, the estimated time for evaluation of a building for certification is 7 to 10 business days. The Insurent® Lease Guaranty is presently available for market-rate and rent-stabilized apartments only, and it cannot be utilized for rent-controlled apartments.

Do all landlords in the New York area accept the Insurent® Lease Guaranty?
A number of landlords presently accept the Insurent® Lease Guaranty. New landlords and their respective buildings are being added to our database on an ongoing basis.

Is the Insurent® Lease Guaranty offered for rent-stabilized apartments?
The Insurent® Lease Guaranty Program is available for market-rate and rent-stabilized apartments, and cannot be utilized for rent controlled apartments.

Can my client get pre-approved for the Insurent® Lease Guaranty before he or she finds an apartment?
Yes. If your client is a sole lease holder, he or she can apply for the Insurent® Lease Guaranty, and if he or she qualifies, he or she will receive an Insurent® Qualification Certificate. He or she can show the Insurent® Qualification Certificate to brokers and landlords to help speed the lease-approval process.

There is no additional charge for an Insurent® Qualification Certificate.

Once your client finds an apartment, Insurent® will verify his or her application information and references before issuing a guaranty.

Do my client's rights change if he or she has an Insurent® Lease Guaranty?
No. Your client's rights and obligations remain the same, including your client's obligation to pay rent as required by his or her lease. In fact, he or she will be subject to legal action for the full recovery of any payments that the insurer makes to the landlord on his or her behalf.

Does the use of the Insurent® Lease Guaranty Program mean that my client cannot be evicted if he or she stops paying rent or breaches any other provision of the lease?
In the event that your client stops paying rent or breaches any other provision of the lease, the landlord will still take legal action that includes the commencement of an eviction proceeding against him or her. In the event that the Insurer is required to make any payments to the landlord on your client’s behalf, your client will be subject to legal action for the full recovery of any such payments and his or her credit report will be negatively affected.

What is my maximum liability under the Insurent® Lease Guaranty, in the event that he or she breaches any of their lease obligations?
Your client will be liable for any amounts paid on their behalf plus any legal fees incurred to collect those amounts.

What happens if my client has a roommate?
If two or more roommates will sign a lease (i.e., act as signatories), and if one of the signatories intends to apply for an Insurent® Lease Guaranty, then all signatories must apply for a lease guaranty.

Once Insurent® receives all applications that are required from signatories, each application goes through the evaluation and approval process. Insurent® requires separate applications from signatories because all signatories are bound to the rights and obligations under the lease.

A roommate who is not a signatory does not need to submit an application to Insurent®.

If my client has a roommate who will also be signing the lease, do they both have to pay fees?
Yes, they will both be individually responsible for payment of the residual value fee (guaranty fee). How they divide the fee payment between themselves is at their discretion.

If one spouse has bad credit and the other spouse has good credit, can they still qualify for the Insurent® Lease Guaranty?
If your client’s spouse is signing the lease, he or she must also complete an application. Similar to when they would apply for an apartment lease, if they file a co-application, both applications will be reviewed. In any circumstance under which there is more than one signatory on a lease, credit problems for any of the applicants could affect the approval decision.

Can my client pay the Insurent® Lease Guaranty residual value fee in installments like car insurance and life insurance?
No, the residual value fee (guaranty fee) is paid in full at or prior to the execution of the apartment lease.

My client is self-employed and earnings vary significantly from year to year. Can my client qualify for the Insurent® Lease Guaranty?
Yes. Self-employed persons are eligible to qualify for the Insurent® Lease Guaranty Program. The application review process is the same regardless of the applicant's employment status.

My client receives a bonus in addition to his base salary. Will the prospective bonus be included in the consideration of the application by Insurent®?
Total income, including guaranteed and expected bonuses, is reviewed. Bonuses may be given different weights, depending on your client's historical receipt of such bonuses, and the certainty of receiving such bonus.

Can a Non-U.S. resident with no prior credit history in the United States, who is moving to the United States from another country, qualify for an Insurent® Lease Guaranty?
Yes. Non-U.S. residents are eligible to qualify for an Insurent® Lease Guaranty. The application review process is the same regardless of the applicant’s residency status.

Can a relocation specialist apply on behalf of a client?
Only the individual who will be the occupant of the apartment, as well as the signatory to a lease, can apply for the Insurent® Lease Guaranty. This is because the information required of the applicant is confidential, as is the interaction between Insurent® and the applicant.

What are Insurent®'s hours of operation?
Insurent®'s hours of operation are Monday-Friday from 9:00 a.m. to 6:00 p.m. (EST), excluding holidays.

How long does it take to process the application for the Insurent® Lease Guaranty?
Applicants whose online applications are approved will have an Insurent® Qualification Certificate processed and issued to them typically within 24 hours. Applicants who submit applications by mail, email or fax and are approved will have an Insurent® Qualification Certificate issued to them within two business days.