World Insurance Associates has been appointed as the exclusive insurance provider for the Pensio Rental Income Programme for the US, which will include a bond underwritten by a protected cell captive (PCC) insurer.
The Pensio Rental Income Programme provides lenders with certainty that a competed unit can be sold or can earn a certain income.
With the five-year Rental Income Contract Bond, it safeguards investment returns by covering tenant default.
The bond, which is provided by Pensio as principal to purchasers, is underwritten by a PCC, 100 percent reinsured by reinsurers rated “A” Excellent by A.M. Best and that specialise in reinsuring commercial, and contract surety.
Frank Costa, principal and COO at World Insurance Associates said the firm, who offer personal and business insurance solutions across 46 states, recognised the chance to bring a rental insurance protection programme to the US as “a huge opportunity”.
Costa explained: “While this programme is common in other highly developed European and Pan-Pacific markets, it is nearly non-existent in the US, where the estimated total annual rent paid is in excess of $665 billion."
Pensio US CEO Nina Fabbri commented: “We are excited to enter the US market and provide residential rental property owners, developers, lenders, and buyers with the coverage they need.”