| 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. |
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| 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. |
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| When
would the Insurent® Lease Guaranty be used?
The Insurent® Lease
Guaranty Program will primarily be used when a landlord in
a qualified building requires a prospective tenant who doesn't meet the landlord's criteria (including insufficient income or credit) to have a third-party guaranty of the lease,
and/or additional security or prepayment of rent. The landlord
may be willing to accept an Insurent®
Lease Guaranty instead of some or all of these items. |
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| What
is the advantage of an Insurent® Lease Guaranty
over a parental or co-signer guaranty?
The Insurent® Lease Guaranty is provided by a highly rated insurance company. CastlePoint Insurance Company is rated A- (excellent) by A.M. Best. The Insurent® Lease Guaranty represents an institutional guarantor of payment versus a guaranty of collection by an individual. Insurent®
pays the claim within five business days of the filing of claims. |
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| What
does the Insurent® Lease Guaranty cover?
The Insurent® Lease
Guaranty insures the performance of the tenant under
the lease. The Lease Guaranty insures that the landlord will receive
payment of the loss due under the lease, in the event
of the tenant's breach. Please view
the Lease Residual Value Policy for specific details. |
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| Who
pays for the Insurent® Lease Guaranty?
The tenant pays for the Insurent®
Lease Guaranty. The tenant 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 residual value
fee (guaranty fee), coverage is initiated for the landlord for the lease.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. |
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| What
is the duration of the Insurent® Lease Guaranty?
The Insurent® Lease Guaranty Policy 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. Please view the Lease Residual Value Policy for specific details. |
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| What markets are covered by the Insurent® Lease Guaranty Program?
Currently, the Insurent®
Lease Guaranty is applicable to apartments located in the New York metropolitan area. We plan to expand the program
to other major U.S. markets in the near
future.
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| When
does the landlord or condo/co-op owner receive payment under
the Insurent® Lease Guaranty Program?
The landlord submits a claim upon termination of a lease and recovery of legal possession of the apartment. Payment of loss to the landlord or condo/co-op owner is made within five business days of receipt of a claim under the Insurent® Lease Guaranty. For complete details, please view the Lease Residual Value Policy. |
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| Are
there any pre-conditions under the Insurent® Lease
Guaranty Program?
Yes, there are a few minimal pre-conditions. The primary pre-condition is that the landlord must
commence an eviction proceeding within 65 days of non-payment by the tenant. For
complete details, please view the Lease Residual Value Policy. |
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| Is
the Insurent® Lease Guaranty applicable to any
apartment?
The Insurent® Lease Guaranty Program will only apply to apartments located in
Insurent®-certified buildings. You can search the Insurent® database of
certified buildings. Insurent is constantly expanding its base of certified
buildings. |
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| Is
the Insurent® Lease Guaranty applicable for rent-stabilized
apartments?
The Insurent® Lease Guaranty is available for market-rate and rent-stabilized apartments only. |
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| Do
all landlords in New York accept the Insurent®
Lease Guaranty?
A number of landlords presently accept the Insurent® Lease Guaranty. New landlords and their respective buildings are being added on an ongoing basis. If you wish to have your building accept the Insurent® Lease Guaranty, please email landlord-info@insurent.com or call (212) 295-5000
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| Do
the landlords' rights under a lease change if the tenant has
an Insurent® Lease Guaranty?
The landlord retains all of the rights which are part of the apartment lease. Moreover, all of the tenant's obligations and responsibilities under the apartment lease remain the same. |
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| Does
the use of the Insurent® Lease Guaranty mean that
I cannot evict the tenant if he or she stops paying rent or breaches other provisions of their lease?
No. The Insurent® Lease Guaranty does not prevent a landlord or condo/co-op owner from commencing an eviction proceeding. Utilization of Insurent®’s Lease Guaranty will not relieve a tenant of any obligations including the payment of rent. In addition, a tenant is liable to the insurance company for any claims paid to the landlord, and will be subject to legal action for the full recovery of any such payments. Please view the Tenant Participation Agreement for specific details. |
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| What
happens in the case of a renewal lease?
The Insurent® Lease
Guaranty does not automatically apply to lease renewals or
extensions. If the tenant needs a lease guaranty for a lease renewal,
he or she will be required to reapply for the second year. If the tenant is approved,
he or she will pay a new residual value fee (guaranty fee) at a discount. |
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| Can
a tenant get pre-approved for the Insurent® Lease
Guaranty before he or she has found an apartment?
Yes. A prospective tenant 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 the tenant finds an apartment, Insurent® will verify his or her application data and references before issuing a lease guaranty. If the prospective tenants each want their names on the same lease, they will only qualify if they have selected an apartment from an Insurent®-certified building. |
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| 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. |
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