Welcome to Passive Real Estate Investing. I'm your host Marco Santarelli.

And today we're going to talk about something that has come up in the past and I've had some experience with over the years. But that is the question of how can you do something to help guarantee your rental income to guarantee the outcome of what you expect your property to produce or how you want it to perform. And up until recently, there was really no way to ensure, if you will, your rental income until now. And so what we've done is we've partnered with a person who I've known for quite a while, a trusted individual in the insurance space to essentially provide an opportunity for you to insure against your rent loss. It's essentially rent default insurance.

For more information and inquiries please visit:  https://www.noradarealestate.com/rent-guarantee-insurance/

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And so today I have John on the episode with me here. He's my insurance partner and he administers the landlord rent default insurance. And so we're going to have a conversation about what this is all about and how you can use it. So, John, welcome to the show. Thanks, Mark. I'll have it to be here. Well, that's great. So this is something that we started talking about, if I'm not mistaken, about a year and a half ago when we were down at one of the IMN events and I believe in Florida. Is that about right?

That's correct. And um, you know, things have happened always more slowly than you want, but we're happy to be here today, not a podcast, I guess roughly 18 months later.

Well, it's come a long way and I know you've been putting a lot of time and energy and work into building this thing and making it happen with the underwriter. So, you know, I like to always start with the most basic of questions and that really is what is landlord rent default insurance.

So rent default insurance or landlord rent fall insurance is a product. Um, that's actually a pretty well adopted around the world but never really took off in the US essentially what it does is it protects property owners against lost rental income in the event of tenant nonpayment. As you know, Marco being a, you know, a landlord for a long time, no matter how long or how good you are picking tenants, sometimes good tenants go bad, you know, someone loses their job, their break up with their spouse, et cetera. And what these types of insurance programs do is they indemnify that owner against that loss rental income. So similar to your house burns down and you've got loss of rents on your rental unit, burns down, it's covered, it's covered peril. And because of that, you'll collect your loss rental income, but no one offers if your tenant just stops paying. And really that's what we've created here at my firm and are excited to be working with groups such as yourself and the neurotic team.

Well, I appreciate that. So let's talk about what this actually covers. Cause some people are probably listening to this thinking, Hey, this sounds really interesting and it might be a good fit for what I'm doing in terms of the portfolio that I've built in the properties that I own. So what does this actually cover? Let's talk about that. So these rental fault insurance programs cover the nonpayment of rent by the tenant. So if a tenant skips town, you know, disappears in the middle of the night or just as a bad tenant, as you know,