Commercial Rent Guarantees
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Rent guarantee insurance is a risk-management product that protects landlords against loss if a lessee defaults. This insurance pays the monthly rent for a set period of time if the covered tenant stops making payments.
Rent guarantee insurance protects landlords against loss of income if a tenant falls behind or defaults on rent payments. Landlords typically pay for the premiums, though it is also possible to require the tenant pay for it instead in extra rent or if the lease specifies it in writing. Insurers will look to the financial stability and creditworthiness of the tenant(s) to underwrite the policy.