Commercial Real Estate Rent Default Insurance (CRERDI®) coverage is a unique product and no similar product is available in the US.
Rent defaults have become one of the biggest problems facing both small and large property owners alike.
Whether tenant's delinquency is related to a change in industry conditions, overexpansion, an unanticipated event which causes the tenant's business to suffer, or a downturn economy where it becomes no longer financially viable for a commercial tenant to continue its operations at the leased property and faces the prospect of defaulting on the lease, financial impact can be severe when a tenant default.
The property owner suffers an immediate loss of income until the tenant is evicted and the property released, and it can take months to find a replacement or evict a tenant.
Property owners also face significant legal expenses - all while having to maintain mortgage and property tax payments.
What is Commercial Real Estate Rent Default Insurance?
Commercial Real Estate Rent Default Insurance (CRERDI®) is a risk transfer vehicle for property owners who are heavily reliant on consistent rent payments from their tenants to maintain their investment.
Policy pays up to six months of lost net rent, allowing property owners to start the eviction process without giving up 100% of the rental income, as well as reimbursements of legal expenses associated with the eviction process.
The policy can also provide reimbursement for the tenant's leasehold improvements once the tenant is removed.
Commercial Real Estate Rent Default Insurance (CRERDI®) is available in all 50 states!