Insurances arranged at Lloyds   (800) 975-0562 9am to 8pm CST Monday—Friday


  • Scheer Landlord Protection Insurance is only available for properties that are managed by a Professional Property Management Agent.
  • Cover is not available on any property with a monthly rent below $1,000 or that is located within the five boroughs of New York City.
  • Scheer Essential is available for properties with a monthly rent between $1,000 and no greater than $2,000. The maximum level of cover for a rent claim under Scheer Essential is up to $2,000 per month.
  • With Scheer Premier and Ultimate, If the monthly rent of a property is above $2,000 per month, cover up to $3,000 per month can be purchased at an additional premium of $100 excluding taxes and fees.
  • If the additional premium cover noted above is not purchased, an insured property with a monthly rent above $2000 can purchase either Premier or Ultimate but the maximum claim will be limited to $2,000 per month.
  • All claims will be settled according to the lesser of the rent on the current lease, or up to a maximum per month rent cover of $2,000, or up to $3,000 per month if the Invoice/Certificate of Insurance shows that additional cover was purchased.
  • Cover is subject to Policy Wording conditions, exclusions and a qualifying period for loss of rent claims. You should read all documents thoroughly to ensure the product suits your needs.

Cover can be started at any time (but cannot be backdated). If you have just purchased a property, the best time to start is straight away – especially if the property is vacant and being advertised for rent. As a landlord, you have exposures from the moment you or your agent begins showing potential tenants through the property.

There is an arrears condition that states – If the tenant’s rent payments were in arrears of the rent due date by 6 days or more in the two months immediately prior to the policy commencement date, then the following limitation applies: This policy will not pay a claim for loss of rent from any cause, malicious damage, fire, explosion or theft. Once the tenant subsequently brings their rent out of arrears by paying their rent “on time” which means within 5 days of the rent due date for two consecutive months, this limitation will no longer apply to a future claim.

Arrears at policy commencement – For new tenancies
If the new tenant has paid all of their financial obligations prior to moving into the property where a policy already exists, then the above limitation does not apply.

Arrears at policy commencement – For new tenant – new policy
When a new policy is taken out just before or at the beginning of a new lease, then provided the new tenant has paid all of their financial obligations pertaining to the lease, prior to moving into the property then the above limitation does not apply.

If a new tenant is allowed to move into the property before all of their financial obligations pertaining to the lease have been met then the above limitation will apply until all obligations are fulfilled.

Only for damage to the building caused by malicious damage and theft by the tenants or their invitees. The landlord should also consider having Building Insurance, which covers a broader range of damage to buildings, especially in the case of non-strata title properties. Our Residential Building Insurance Policy (which will be available soon) combined with Scheer Landlord Protection provides a more complete package of cover.

Yes, the cover is no longer valid when the landlord takes up permanent residence at the insured property or ceases to have it available for rental. The landlord or property manager should advise us as soon as the property is no longer advertised or available for rental.

The policy will pay loss of rent only in an environment where the landlord is suffering a loss and is trying to mitigate that loss by re-leasing the property. The date the landlord withdraws the property from the rental market and stops trying to secure a new tenant then any ongoing Loss of Rent claim stops paying at that point of time. Proof of all mitigating actions must be provided with supporting claim documents.

No, most requests can be processed over the phone by the insured policy holder. Faxed or email instructions from the landlord are also acceptable. You can either contact SureVestor directly or your real estate agent to make changes to or cancellations of the policy. In certain circumstances we will confirm a real estate agent’s instructions with their landlord prior to cancelling the policy.

Yes. Both fixed term and monthly leases are covered, including any continuation of a lease. The initial term must be a minimum of 6 months.

Most properties do qualify provided the monthly rent is $1000 or above and the property is fully managed by a professional property management agent. Cover is not available for a leasing only arrangement with the agent or if it’s within the five boroughs of NYC. If you take the property back to self-manage, your insurance is void and you can apply for a pro rata refund.

The premium applicable under the level of cover you purchase provides insurance for one year on one property/unit. If you own a multi family property that has four separate units then you will need four policies as each unit is a separate risk. Each rental home, unit or condominium will have it’s own individual policy just as it has individual leases. If you own properties in other states, each policy will be invoiced separately as different state taxes, fees etc apply.

We provide you with a “Cooling Off” period of 21 days from the commencement date of the policy. Provided you have not already lodged a claim we will refund the full amount that you have paid if you decide the cover doesn’t meet your requirements. Cancelling cover at any other time in the year can be done by advising your property manager that you want to cancel it and a pro rata refund will apply.

If your property has been vacant for 60 days or more when you are applying for cover under this policy we will not accept the risk. If however, you purchased the cover with a tenant in place or at the beginning of a new tenancy and during that policy year the tenant moved out or you evicted them, we will cover the property unoccupied for up to 60 days. If it is still unoccupied at 60 days then you must cancel your policy and a pro-rata refund will be sent to you. The policy cover is void at 75 days unoccupied even if you have failed to notify us.

If your tenant has moved out at the end of the lease and it takes a few weeks to re-lease the property that is not considered an insurable risk but rather the risk of doing business in that market. The policy is designed to cover loss of rent as a result of the actions of the tenant, not the market.

Malicious Damage presumes deliberate, intentional, spiteful or vindictive damage carried out by the tenant with the intent to damage the Landlord’s Property. This may be their reaction to being evicted or perhaps they have had a domestic dispute and lost control so they lashed out against the walls and doors. In most states it is a crime or felony. Children or Pet damage is not covered under the policy the only exception is a service or companion animal as defined in the policy document. Here are some examples of what is and what isn’t malicious damage. We suggest that the property managers asks themselves two questions before reporting a malicious damage claim:

Q 1. Would I be prepared to report the tenants to the police for committing the crime of malicious damage?
If your first response is to hesitate or to immediately say no, the chances are it is not a malicious damage claim. In some circumstances the underwriters will appoint a loss adjustor to inspect the damage and they may insist that you report it to the police.

Q 2. If we cleaned up the mess and garbage all over the place, would the floors or cupboards underneath actually be damaged or just exceptionally dirty?
If there was no physical damage to the landlord’s property once you cleaned up the mess, then you do not have a malicious damage claim. If the tenant has left the property in that condition then the clean up costs can be deducted from the security deposit if that is allowed in your state.

Examples of what IS considered malicious damage:

  • A tenant removes an internal wall to enlarge a room without landlord permission,
  • The construction of a wall by the tenant without approval,
  • Tenant sets fire to the landlord’s property with the intent to burn the place down,
  • Concrete is poured down the kitchen sink and bathroom drains,
  • Extensive graffiti on the walls,
  • Damage as a result of the tenant being attacked in the property which causes damage,
  • Cupboards being pulled from the walls, doors torn off their hinges.
  • A tenant committing suicide in the property,
  • Punching holes in walls or doors
  • Gouging of walls or use of a hammer to damage walls,
  • Plugging up the bath and intentionally allowing water to over flow through the property.

Examples of what IS NOT malicious damage:

  • A red wine spill that stains the carpet,
  • A scorch mark on the kitchen counter top from a frying pan,
  • When the tenant uses bleach to clean up their mess and it ruins the carpet or floor,
  • A hot iron or cigarette leaves a scorch mark on the carpet,
  • Holes left in walls from the tenants hanging pictures or other decorations,
  • Children drawing on walls or spilling their paints on the carpet,
  • Coals that escape an open fire and leave scorch marks on the carpet,
  • The tenant had a party and the carpets and curtains have had alcohol spilled on them,
  • Tenant’s dog was locked inside all the time and had ruined the carpet and scratched the doors.

The most basic principal of insurance is that of “Good Faith”. When you buy insurance and pay the premium you are assuming that if something goes wrong during that policy year, the Underwriters will pay a claim if it is covered. That expectation is your Good Faith just as the underwriter expects you to purchase insurance because it is a wise move to protect your investment. If you wait until something has gone wrong such as the tenant is 1-month delinquent in rent, then the loss has already occurred, and you cannot in Good Faith expect the insurance company to accept the loss that, in effect, began before you purchased insurance. The same principal that applies when buying car insurance, it’s too late to buy insurance after you have already written off the vehicle. To protect the underwriters, a qualifying period of 2 months applies at the commencement of each policy.

Your property manager is expected to screen your tenants in line with normal criteria and industry best practice. A tenant who would not otherwise qualify for the lease, should not be approved just because you purchase this insurance to offset a potential loss. This will not only result in having to release the property, but repeated claims due to poor tenant selection could lead to insurance renewal being denied.

Absolutely not. There are very strict legal guidelines that apply to insurance and Regulators frequently conduct audits to ensure the consumer is not being charged for kickbacks between third parties. Your agent will have made you aware of the availability of this insurance as part of their duty of care to ensure you have the opportunity to protect yourself against insurable hazards. They are not able to mark up the premium cost to you.

When something goes wrong, the security deposit usually falls short in covering all of your out of pocket expenses. This is the reason why Landlord Protection Insurance was created to protect your rental income. The security deposit can be used to cover the other financial obligations your tenant has to you under the lease agreement. Your property manager will know what they can legally deduct from the security deposit during the claim process and any remaining deposit can contribute towards your rent loss.

Regardless of how much of the security deposit is collected the claim will be calculated as though you have a minimum of 1 month’s rent for security. Any shortfall in the deposit is at your own risk. An example of this would be a tenant that skips 3 months after signing a 12 month lease. For some reason you only have 50% of their security deposit. The property manager will do their best to quickly re-lease the property and may not charge a full re-leasing fee or any fee at all. Let’s say you loose 7 weeks rent before the new tenant signs up and the previous tenant left the place clean so possibly the only deductions from the security deposit are a partial re-leasing fee and the balance of the security deposit can contribute towards outstanding rent. If you had collected a full security deposit then the underwriters would only be considering a claim for 3 weeks, but because you only collected 50% you lodge a claim for 5 weeks rent. The policy will only pay the amount that they would have paid had you collected the full security deposit, so they would pay 3 weeks rent.

You are entitled to negotiate with the tenant at any time during the lease. However, if you agree for example, to accept 50% of their outstanding debt as full settlement of his/her legal debt, it would be considered that you are electing to self-insure that risk and a claim will not be accepted. If at the time of delinquency the tenant starts to make additional payments to catch up but then subsequently either skips or has to be evicted, then you can lodge a claim for delinquent rent. The critical issue is that the underwriters have the right to recover all claims monies from the tenant. If you have entered into an agreement with the tenant to accept a nominal payment to clear the entire debt then you prevent the underwriters from exercising their rights. If they pursued the tenant for the balance of the debt that you claimed for and received payment, the tenant could prove in court that he cleared his debt by agreement with you.

Yes you do. Purchasing insurance does not remove the need to follow all remedies available to you to reduce your loss and hold the tenant responsible for their lease obligations. If the tenant vacates the property and fails to pay outstanding rent, than that is a tenant skip and you can make a claim under that policy benefit without the need of an eviction order. If however, the tenant has stopped paying rent and is still in the property then you will need to file for eviction and if necessary possession. Copies of the eviction and or possession orders must be submitted with the claim along with other supporting documentation. If the tenant leaves the property before you have filed for eviction then you can only claim the benefit for tenant skip.

It is expected that your property manager will do everything they can to reduce your loss of rent and it is important that you allow them to take all available steps to do so. If you interfere with or hold up the process it may reduce the amount you are able to claim. This includes the process of filing for eviction and completing all the necessary steps required in taking possession of the property. If the fees and defense costs are NOT re-paid to you by the tenant then you can claim those costs under the benefit in this policy for eviction filing and defense costs. If the court only demands that the tenant pay a nominal fee such as a flat court fee then you can also claim the shortfall of costs. If the lease states that the tenant has to pay late fees these are an allowable deduction from the security deposit regardless of whether they are awarded by the court or not. The policy will also pay the eviction and filing fees, but not late fees where the tenant pays to stay even though you have gone through the process to evict them. There is a stated limit on the amount of cover available for these fees and that limit applies per policy year so if you have already claimed for a pay to stay situation, you level of cover is reduced until the next policy renewal.

If for example, the tenant had been in the property a long time without rent increases then your agent may consider it reasonable to increase the rent when advertising for a new tenant if the market condition at the time supports it. If you raise the rent to the extent that it sits vacant for too long, indicating that perhaps the increase is not realistic, then the underwriter has the right to adjust the claim accordingly.

Maintenance must not be confused as malicious damage and trying to claim against insurance for maintenance may be treated as fraud. It is a property owner’s responsibility to not only protect the quality of your asset but also to provide a safe environment for your tenant. This insurance does not cover your maintenance responsibility and neither does it cover the mark up/override fee charged by your managing agent to arrange for the work to be done.

Yes we need your property manager to process the claim as they will have access to all the supporting documents that we require and they will be co-coordinating repairs or evictions on your behalf. They will be able to follow the instructions on our website.

The only deductibles that apply are $500 for a Malicious Damage or Theft claim.. There is no deductible for lock box related theft claims. This deductible cannot be covered by the tenant’s security deposit.

The Underwriters have full rights to pursue debt recovery against the tenant to recover claim monies that they paid you under the policy if the tenant was liable for the costs. This is one of the reasons that only genuine claims are accepted and paid for, as there are moral and legal hazards to reporting a tenant responsible for financial loss or damage if it was not genuinely their responsibility.

As soon as the nature of the property use changes such as you move in or you put the property on the market to sell it you must notify us via your property manager and request a cancellation of cover. At which time we will refund you a pro rata premium. You have an obligation to notify us of any change including part of the property being used to carry out business or if you are doing extensive maintenance or renovations. The policy strictly only covers residential property that is for lease and managed by an agent anything else renders the cover void.

The most common misconceptions that landlords and property managers make about landlord protection insurance is that it covers absolutely every imaginable event that may occur including covering standard maintenance expense, bringing the property back to a condition better than it was before a claim and paying for normal wear and tear. Paying the rent during a vacancy period between tenants which is due to market conditions is also as common an expectation as is covering rent loss that has started before insurance was purchased. Mis-understanding is not fraud and most people do not intentionally try to make false claims. Reading the documents we have sent to you will help you understand what is and what isn’t covered. All insurance companies take a firm stand against fraud as insurance fraud can push up premium costs to every consumer. Mills Mehr & Associates, Inc by phone (727) 669 0140, who are a highly respected and extremely competent licensed independent claims service manage the claims process. They have a responsibility to ensure all claims are thoroughly vetted while maintaining a high level of customer service and satisfaction.
They will appoint adjustors or investigators if they determine it is appropriate or simply call the property manager if they have queries about the claim submitted. It is our intention that this product remain viable for the benefit of every landlord and property management company as ultimately our goal is to increase housing availability by strengthening the confidence of Landlord Investors in the market.

The policy covers you for the cost of re-keying locks in the event that there is a covered claim under this Policy. The re-key of locks cover is a benefit payable in the event the tenant does the wrong thing and presents as a risk to the landlords property. This means the cost to re-key locks in between tenancies where the lease is completed and rent obligations are paid, remain an expense for the landlord as the cost of doing business and are not claimable. The re-key is standard business practice between all tenancies not just those that go wrong.

If the underwriter required the PM to transfer all rights of recovery and the PM sent the tenant to collections anyway, the underwriter would be entitled to the recovered amount up to their paid claim amount.  If there was no transferring the rights of recovery, and the PM sent the tenant to collections, the PM can keep for their client any amount that the tenant was obligated to pay that was not something that the underwriter paid.  If there is anything left, it would go to the underwriter.  So if the tenant still owed for the red wine spill on the carpet and the re-leasing fee and collections was able to get the amount of those charges from the tenant, the PM would keep that for their landlord and the underwriter would get nothing. 

No, Landlords or Property Managers are the only parties able to take out and pay for landlord insurance, they are both insured parties under the policy and have an insurable interest in the property.

Another reason why underwriters do not allow tenants to pay for the landlord’s insurance is that the insurance risk would be so high that they would not underwrite it. As it is, the landlord and property manager have a duty of care to mitigate any loss caused by the actions of the tenant. If the tenant paid for the insurance they would consider it their right to cause damage, breach lease conditions and not care about the financial loss as, in their minds, they’ve paid the insurance to cover it. Imagine a tenant breaking a 12 month lease half way through and market conditions meant that it took 3 months to re-lease, do you think the tenant would be thinking about that risk when they skipped? Or if they had a wild party and the property was maliciously damaged by their guests, do you think they would care about the full potential loss to the landlord or the landlord’s future insurability? Unlikely.

Have any other questions? Contact Us!

Call us at (800) 975-0562 or email if you have any further questions.

What Is Your Peace of Mind Worth?

You can never eliminate tenant related risks, but you can actively minimize them. Our Scheer Landlord Protection gives you the peace of mind you need as a landlord and the protection you want as an investor in your property. All for less than $1 a day.