If you decide to collect a deposit, your Rental Protection coverage will only apply to covered loss that exceeds the amount of the deposit you collect.
Example A: If a landlord collects $1,000 in deposit and the renter causes covered damage that adds up to $4,500, and the landlord has up to $5,000 of coverage under Rental Protection, Rental Protection will cover up to $3,500 of the claim.
Covered Loss ($4,500) - Deposit Amount ($1,000) = Loss Payment (up to $3,500)
Example B: If a landlord collects $2,000 in deposit and their renter causes covered damage that adds up to $4,000, plus covered renter default that adds up to $3,500, Rental Protection will cover up to the maximum coverage amount of $5,000.
Covered Loss ($4,000 + $3,500 = $7,500) - Deposit Amount ($2,000) = Loss Payment (up to $5,000)
These examples are for illustrative purposes only. Coverage for any claim will depend on the specific obligations, conditions, and exclusions in the policy.
Coverage is subject to policy terms, limitations, conditions, and exclusions. Descriptions of coverage are for informational purposes only and do not alter any insurance policy or guarantee any specific price, quote or coverage. For a complete understanding of the coverage available, please review the terms, conditions, definitions, and exclusions of your Rental Protection insurance policy.