How long does Padder Guarantor coverage run for?

Padder Guarantor coverage typically runs for the term of the lease, up to a specified number of months, depending on our filings in your province or territory. Here are the key points to understand about the coverage duration:

1. Lease Term Coverage:

   • The policy is active for the duration of the lease.

1. • Landlords can require tenants to obtain either 6 or 12 months of coverage, with durations of 12, 24, or 36 months.

2. Coverage in Case of Default:

   • If a default happens within the policy duration, the landlord will receive the selected amount of coverage.
   • For example, if the landlord requires the tenant to purchase 12 months of rental coverage for a 30-month duration on a $2,000 lease, and the tenant defaults in month 18, the landlord will be entitled to loss coverage of up to $24,000.

3. Reapplication and Requalification:

   • Upon the expiration of the lease, the tenant must reapply and requalify for the Guarantor product.
   • If the tenant does not requalify, the landlord is not obligated to renew the lease.