THE PRODUCT
The idea behind Rent Assurance Policy (RAP) is a private initiative of the Research Unit of NEM Insurance plc in collaboration with Mainstreet bank Insurance Brokers Co. Ltd. Meant to address the challenges associated with landlord/tenant relationship. The Ace, the Formula and the Antidote reside with NEM INUSRANCE PLC.
THE PURPOSE
To ensure that the Landlord is paid rent due in the event of event of tenants inability arising from:
- Loss of employment
- Loss of source of income arising from fire damage and theft impacting on source of income.
- Critical illness and disability
- Death
THE NEED
The need has arisen from massive rent default arising from the above identified sources. This has led to unpleasant acrimonies between landlord and tenants which tend to discourage or slow down investment in real estates.
THE BENEFITS
Landlord:
- Rest of mind, knowing rent is secured.
- Investment Planning Opportunity
- Assures Tenancy Continuity
- It enhances cordial relationship between landlords and tenants as corporate entity is behind each subsisting tenant.
Tenant
- Assures stability of rent due (no incessant increase)
- Rent guarantee against unforeseen circumstances
- Fear of acrimony, raw deal including litigation or forceful ejection is abated.
The term “landlord” includes all the property owners in Nigeria such as Estate Agents, Landlord’s Association, etc.
The term “Tenant” in this regard shall mean persons in paid employment and those in private business including corporate tenants.
WHO INSURES, FOR WHOM?
- The policy is incepted by would-be tenants (corporate or individual) for the benefit of the Landlord.
- The policy is an enhanced assurance against rent default.
|
