Global insurance broker Hub International Limited (HUB) has formed HUB Tenant Liability Captive Insurance company to retain insurance premiums and mitigate risks for residential rental real estate clients.
Multi-family, student housing and single-family residential rentals require residents to carry renters’ insurance, which is traditionally offered by a third-party provider.
HUB Tenant Liability Captive Insurance is designed as a simplified option to generate an additional revenue stream through underwriting profits, risk mitigation and streamlining administration for residential rental real estate owners, operators and managers.
The captive insures against residential property damage caused by fire, smoke, explosion, water damage and falling objects. It has a policy limit of US$100,000 per occurrence, with no deductible and no aggregate limit.
The captive will be made available to more than 13,000 of HUB’s residential real estate clients in the US, and later in Canada.
HUB will work with A-rated insurer, Property Owners Protection Insurance Company (POPIC), to deliver the benefits of the captive to its clients.
James Stuart, real estate speciality practice leader at HUB, explains: “With POPIC, we are changing how a resident liability insurance programme can be structured. 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 programme.”
Back in July, HUB launched a cannabis benefits captive that operated as an employee benefits group captive for cannabis organisations.
