Renters insurance captive launched

Chicago-headquartered Insurance brokers Hub International Limited has launched a captive insurance company for residential rental property businesses. HUB Tenant Liability Captive Insurance aims to create an additional revenue stream for owners, operators and managers of residential real estate.

Hub will work with California-based A-Rated insurer the Property Owners Protection Insurance Company (POPIC) to roll out the captive to over 13,000 residential real estate clients in the US and, later, in Canada.

Multi-family, student housing and single-family residential rentals require residents to carry liability insurance or “renters insurance”, usually provided by a third-party insurance provider. The new captive aims to give residents a convenient option to fulfil the insurance requirement of the lease while allowing owners, operators and managers to retain the majority of the paid premium.

The captive insures against resident damage to the property caused by fire, smoke, explosion, water damage and falling objects. It has a policy limit of $100,000 per occurrence with no deductible and no aggregate limit.

“With POPIC, we are changing how a resident liability insurance program can be structured,” said James Stuart, HUB’s real estate specialty practice leader. “Our clients will ultimately benefit economically from the captive, collecting the insurance premiums, mitigating risks and easing the administrative burden of implementing and running the program.”