What is the Insurent® Lease Guaranty Program?
The Insurent® Lease Guaranty Program is the first and only provider of institutional guarantees on residential leases.
What are the benefits of the Insurent® Lease Guaranty to the owner/landlord?
The Insurent® Lease Guaranty Program reduces vacancies, closes leases for creditworthy persons that otherwise would not have closed, drives renters to your buildings, streamlines the rental process and eliminates all rent loss on leases guaranteed under the Insurent Lease Guaranty Program, all at no cost to the landlord/owner.
Who is the Insurer of the Insurent® Lease Guaranty Program?
The Insurent® Lease Residual Value Policy is underwritten and issued by Argonaut Insurance Company, a property and casualty insurance company licensed in New York and other states. Argonaut Insurance Company is rated A (Excellent) by A.M. Best, and is located at 225 West Washington, 6th Floor, Chicago, IL 60606.
When would the Insurent® Lease Guaranty be used?
The Insurent® Lease Guaranty Program will be used when a landlord requires a prospective tenant who doesn’t meet the landlord’s criteria (including insufficient income or lack of credit) to have a third-party guaranty of the lease, and/or additional security or prepayment of rent.
Who are the primary renter groups that need the Insurent® Lease Guaranty?
Prospective renters needing the Insurent Guaranty include graduating college students and professional school students entering the workforce; self-employed persons; non U.S. executives relocating to the U.S. without any U.S. based credit history; non-employed U.S. and non U.S. persons with cash liquid assets; retired persons; international students with Responsible Parties (Parents overseas), and U.S. students with Responsible Parties (Parents), and Corporations.
How do you issue a Guaranty for an international or US student?
We qualify a foreign student or U.S. student based on their father (or mother or some relative overseas or here) being a Responsible Party solely on our Agreement. Their father (or some relative overseas or here) would not be a signatory on the apartment lease. The father (or mother or some relative overseas or here) will just need to have a minimum annual income of 50x the monthly rent in their home country or a minimum of cash assets/marketable securities held by them in their home country of 80x the monthly rent. We can also combine parents to meet the above tests.
What groups of renters will you not provide guarantees?
The Insurent Program will not guarantee renters with weak or bad credit.
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 billion dollar insurance company. Argonaut Insurance Company is rated A- (Excellent) by A.M. Best. The Insurent® Lease Guaranty represents an institutional guaranty of payment versus a guaranty of collection by an individual. Insurent® pays the claim within five business days of the filing of claims. Moreover, the Insurent Program can be far quicker in closing the lease than an individual guarantor as we normally issue the guaranty on the lease within 24 hours.
What does the Insurent® Lease Guaranty cover?
The Insurent® Lease Guaranty insures the full rent obligation under the lease. Please view the Lease Residual Value Policy for specific details.
Who pays for the Insurent® Lease Guaranty?
The tenant pays for the Insurent® Lease Guaranty. The tenant pays a one-time fee prior to the execution of the rental lease agreement with the landlord. On average, the fee for U.S. parties will approximate 80% – 90% 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. Upon payment of the residual value fee (guaranty fee), coverage is initiated for the landlord for the lease. Landlords solely accept the Insurent Lease Guaranty Program.
How long does it take to process the application for the Insurent® Lease Guaranty?
Applicants complete online applications and are approved or disapproved for an Insurent® Qualification Certificate issued to them typically within one hour except for weekends and holidays. The full process from online application to issuance of the Guaranty to the landlord with typically take 24 hours.
What is the duration of the Insurent® Lease Guaranty?
The Insurent® Lease Guaranty Policy primarily covers one year leases or one year leases with a partial month. 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.
What markets are covered by the Insurent® Lease Guaranty Program?
Currently, the Insurent® Lease Guaranty is applicable to apartments located in New York and New Jersey. We plan to expand the program to other major U.S. markets in the near future.
When does the landlord or condo/co-op owner receive payment under the Insurent® Lease Guaranty Program?
The landlord submits a claim upon 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 Lease Residual Value Policy. For complete details, please view the Lease Residual Value Policy.
Are there any pre-conditions under the Insurent® Lease Guaranty Program?
Yes, there are a few minimal pre-conditions. The landlord must commence an eviction proceeding within 65 days of non-payment by the tenant, and the landlord must collect payment of the first month’s rent and one month of security (or the last month’s rent). For complete details, please view the Lease Residual Value Policy.
Do I have to change my existing procedures to incorporate the Insurent® Lease Guaranty Program?
No. There is no change to your existing procedures.
Is there an obligation for the landlord to use the Insurent® Lease Guaranty Program after accepting the Program in its buildings?
Are there any hidden costs to a landlord/owner after accepting the Insurent® Lease Guaranty Program ?
Is the Insurent® Lease Guaranty applicable to any apartment?
The Insurent® Lease Guaranty Program presently applies to rental apartments, condos or single family homes with monthly rents of $1,000 or higher in New York and New Jersey.
Is the Insurent® Lease Guaranty applicable for rent-stabilized apartments?
The Insurent® Lease Guaranty is available for market-rate and rent-stabilized apartments. The Insurent Program is particularly important in leases governed under Rent Stabilization in New York City as it offers, in most cases, the only way to close the lease if the renter does not meet the landlord’s requirement and does not have an individual guarantor at 75x-90x the monthly rent in NYC.
Can the Insurent® Lease Guaranty be used in buildings or condo/coop apartments that don’t accept the Insurent Program?
No. The Insurent® Lease Guaranty Program must be accepted by the landlord/owner in order for Insurent Guarantees to be issued on specific leases. There is no cost of any kind to the landlord/owner. Signup of an individual building, condo or sponsor coop unit takes less than one hour.
Do all landlords in New York accept the Insurent® Lease Guaranty?
A number of landlords throughout NYC 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 email@example.com or call (646) 843-1712.
Please detail the Sign-up Process for an Owner and the timing for the sigup of its buildings?
Signup of your buildings occur in a few hours and only requires the following information to be emailed to Insurent: (i) The name of the legal entity owning each building; (ii) the address of each building including zip code; (iii) the principal name and address of your company or management company; and (iv) the name, email address and telephone number of your head of leasing. For individual condo units or coop sponsor units, also add the unit number.
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.
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. Pursuant to the Lease Residual Value Policy, the landlord/owner must commence an eviction proceeding within 65 days of non-payment by the tenant. 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.
Is there an obligation for me to accept an Insurent Qualified Renter?
No. The decision to accept the renter is always the landlord’s decision.
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 reapply for the second year. If the tenant is approved, he or she will pay a new guaranty fee at 15% discount.
Please detail the Claims Process.
Upon recovering legal possession of the apartment, the Insurer will bring the Landlord or condo/coop unit owner current within 5 business days of the claim submission for all past rent owed after receiving a Court order, judgment of possession (including abandonment) or settlement agreement in an Eviction Proceeding, or an agreement between the Landlord and the Tenant approved by the Insurer, however many months that represents under the one year lease. The Settlement agreement in an eviction proceeding, the Agreement between landlord and tenant approved by the Insurer, and Abandonment without a court order do not require a judgment. In the event that there are additional months remaining on the lease term, the Insurer will pay on a monthly basis on the 10th day of every month until the apartment is relet. If the apartment was relet for less than the monthly rent specified in the original lease, the Insurer will pay the differential to the landlord on the 10th day of every month until the termination of the original lease term.
Can a prospective 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 application fee or an Insurent® Qualification Certificate.
Once the prospective tenant finds a specific apartment or before, the renter will submit his or her income and identity validations (or other applicable verifications) wherein the renter will be fully qualified by Insurent. The Insurent Guaranty will be issued promptly to the landlord/owner upon the execution of the Tenant Participation and the payment of the Guaranty fee.
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. Although our office is closed on the weekend and holidays, we still process applications in the evening and on weekends, and issue Qualification Certificates at those times.