Frequently Asked Questions
Quick answers to the questions operators ask most often about Padder Guarantor and Padder Deposit.
About the Products
What is Padder Guarantor?
Padder Guarantor is a contractual liability insurance policy that acts as an optional alternative to a personal guarantor, supporting applicants who may benefit from additional backing during your approval process. It protects you against eligible unpaid base rent for up to 12 months (inclusive of up to two months for re-leasing) during the first 36 months of the tenancy, subject to policy terms, conditions, and limits.
What is Padder Deposit?
Padder Deposit is a contractual liability insurance policy that acts as an optional replacement for the traditional Last Month's Rent deposit. It helps to lower a tenant's move-in costs and protects you for up to one month's base rent in eligible losses related to rent default, failure to move in, holdover, or abandonment, for the duration of the tenancy (up to 10 years), subject to policy terms, conditions, and limits.
Who underwrites the policies?
Both policies are issued by The Insurance Company of Prince Edward Island (ICPEI), part of the Desjardins group of companies. Padder Underwriting Inc. is the managing general agent (a licensed insurance intermediary).
How does Padder benefit my operation?
Operators use Padder to help expand the pool of qualified renters, support faster lease-ups, reduce bad debt exposure, and lower administrative overhead — without changing how you screen or enforce leases.
Cost & Compensation
Is there a cost to me?
No. Padder is free for operators. The tenant pays the entire premium directly to Padder at checkout.
Do I receive a fee, commission, or referral payment?
No. Operators cannot receive any fee, commission, or compensation tied to a tenant's purchase of Padder. Padder is paid for entirely by the tenant.
Who collects the premium?
The tenant pays Padder directly.
Tenant Applications
Can I require a tenant to use Padder?
No. Tenant use of Padder is strictly voluntary and cannot be made a condition of tenancy.
Who qualifies for Padder Deposit?
Padder Deposit is available to tenants you've already approved for a unit. It aligns with your screening — it doesn't replace it.
Who qualifies for Padder Guarantor?
Padder Guarantor is designed to support applicants who may benefit from additional backing during your approval process — for example, renters who are new to Canada, students, self-employed, or building their credit history. All applicants are subject to Padder's underwriting, which applies objective criteria consistently. You retain full discretion over your leasing decision.
How long does approval take?
Decisions are typically returned within 24 business hours after all household members complete their applications.
How do I track applications and policy status?
Every Monday at 10:00 a.m. ET, Padder sends your team a Weekly Snapshot email summarizing every applicant currently in progress at your building(s), with the stage each one is at. You'll also receive direct confirmation when a policy is issued, so your team can complete lease execution.
Coverage & Limits
What does Padder Guarantor cover?
Eligible unpaid base rent following a lease default, including rent loss, failure to move in, holdover, and abandonment. Coverage is up to 12 months of base rent (inclusive of up to two months for re-leasing) over the first 36 months of the tenancy, subject to policy terms, conditions, and limits.
What does Padder Deposit cover?
Up to one month's base rent in eligible losses arising from rent default, failure to move in, holdover, or abandonment, for the duration of the tenancy (up to 10 years), subject to policy terms, conditions, and limits.
What's not covered?
Padder does not cover property damage, non-rent fees or charges, or rent increases beyond the base rent at lease execution. It also does not cover losses from changes to the lease, or from an assignment or sublet, made without Padder's prior written consent. The full list of exclusions is set out in the policy wording.
Does Padder cover rent increases?
No. Coverage reflects the base rent at lease execution. Any subsequent rent increases are excluded.
Does Padder interfere with my right to enforce the lease?
No. You follow your standard lease enforcement process, and you retain all rights and remedies under the lease and applicable law. Padder reimburses you after a Coverage Event occurs.
Claims & Reimbursement
What's the high-level claims process?
Follow your standard lease enforcement when a tenant falls behind, and keep records of the steps taken and tenant communications. The notification step depends on which policy applies:
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Padder Guarantor (with or without Padder Deposit): Submit a Notice of Tenant Default within 45 days of the first missed rent payment. The default must also have occurred no more than 70 days before your Initial Action — your first formal step, such as starting an eviction or rent action, or beginning settlement negotiations; a default older than that isn't covered.
- Padder Deposit only: A Notice of Tenant Default is not required.
Once you've regained vacant possession after a Coverage Event (or, where the tenant never took possession or abandoned the unit, made a good-faith effort to re-rent), re-list / make the unit available within 7 business days and submit your reimbursement request within 60 days of the Coverage Event.
What documents do I need to submit a reimbursement request?
The signed lease agreement, rent ledger, legal notices and decisions (e.g., N4, L1, LTB order), proof of re-listing, and any other documentation reasonably required to support the claim.
How fast does Padder pay valid claims?
Padder reviews reimbursement requests within 1–3 business days. If approved, payment is issued within 5–10 business days, up to the policy limit. Complex cases may take longer.
What happens between notification and claim?
After you submit a Notice of Tenant Default (for Padder Guarantor claims), Padder contacts you and the tenant to attempt resolution and keeps your team updated. This doesn't pause your lease enforcement process.
What if I miss the 45-day notification window or the 60-day reimbursement deadline?
Missing an applicable deadline may relieve the insurer of any obligation to pay on that Coverage Event. We strongly recommend setting internal triggers to file early. (The 45-day Notice of Tenant Default applies to Padder Guarantor claims; the 60-day reimbursement deadline applies to both products.)
Compliance & Onboarding
Do I need to change my lease, screening, or enforcement processes?
No. Padder is designed to fit your existing operations. You continue to screen, lease, and enforce as you do today.
What do I need to do to start accepting Padder?
Sign the Collaboration Agreement and complete a short onboarding session. From there, you can refer applicants directly.
Does Padder approval override my leasing decision?
No. A Padder Guarantor approval doesn't obligate you to lease to that applicant. You retain full discretion over your leasing decisions.
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