Asset Protection Program For Landlords
Extended Program Overview
Liability coverage plays a pivotal role in shielding your investments, offering residents a streamlined alternative solution to guarantee the safety of all units. In the unfortunate event of any harm to your assets, not only is your tenant affected, but your financial inflow and even your standing in the community could suffer.
Engaging the expertise of professional property management instantly alleviates the challenges associated with daily oversight of your real estate holdings. Nexus amplifies this protection by minimizing your liability and potential claims that might weigh down on your homeowner's insurance. Incorporating an alternative to conventional renters insurance provides you, the homeowner, with the highest level of coverage. This initiative is instrumental in decreasing possible claims on your property & casualty policies. This protection layer is invaluable and is a testament to the commitment of both you and Nexus.
Comprehensive Program Details
In a strategic alliance with RLL LLC, Nexus is proud to introduce the Property Damage Liability Waiver (PDLW). This waiver emerges as a distinct solution catering to our clientele and homeowners, enabling the transfer of financial liability in cases of resident-caused losses due to negligence. The PDLW offers a robust coverage of up to $100,000 for any inadvertent tenant-induced damages to your real estate.
Perils Covered By The RLL Policy
The RLL insurance policy extends its coverage to five distinct perils:
Fire
Smoke
Explosions
Water Discharge
Sewer Backup
Frequently Asked Questions
Which Policy Takes Precedence? And Do I Still Need Homeowner's Insurance?
The RLL policy assumes precedence over your other commercial property & casualty policies. As the primary insurer, it responds first to any covered claim. This reduces the claims originating from uninsured residents that you report to your primary insurer, potentially lowering your insurance premium rates.
Additional Rent Charges?
Your rented dwelling benefits from the community's Property Damage Liability Waiver (PDLW), incurring an additional rent of $14.95 monthly.
How is Replacement Cost Managed?
The RLL policy has been structured to settle claims based on replacement costs. This ensures that the insurance payout reflects the current market value of the item, not its original purchase price.
What Constitutes the Claim Limit?
The insurance company's maximum payout for a single claim resulting from a tenant's negligence is capped at $100,000. There isn't an aggregate limit.
Loss Triggers?
Losses are initiated by accidental damages attributable to the resident or their guests, provided these are not outcomes of intentional or criminal activities.
Deductible Payments?
For damages covered under the RLL policy, the policy takes care of the costs, barring a $250 deductible. This deductible is borne by the owner, which contrasts favorably with other policies that often carry higher deductibles.
Does the Tenant Require Another Policy?
The RLL policy differs from an HO-4 policy and doesn't offer the resident any property or liability coverage. Nexus is the primary insured. We strongly advise residents to obtain individual renters insurance.
Resident's Personal Belongings?
For damages under $100,000, the affected units might be eligible for up to $15,000 to replace personal items, at the discretion of the property owner or manager.
Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria?
This is covered within the policy's occurrence limit, provided the $100,000 limit hasn't been reached. This particular coverage has an aggregate limit, capping the maximum payout for such issues during your 12-month policy term.
Impact on Rental Prospects?
Nexus mandates that tenants have renter's insurance (HO-4). Historical trends indicate this hasn’t deterred prospective residents or affected rental rate increments.
Program Administration?
Nexus shoulders the administrative responsibilities. We handle unit placements, continuous monitoring, and detailed reporting, overseeing the entire process seamlessly. Claims filing, vendor coordination, and ensuring repair completion fall under our purview.
Specific Policy Details?
The RLL policy is crafted under the Renters Legal Liability Risk Purchasing Group's master policy. With RLL, you're safeguarded against shared or aggregate limits. Each insured party has distinct policy limits, with no restriction on claim numbers during your policy tenure.
