Operator FAQ: Padder Guarantor and Padder Deposit

About the products

What is Padder Guarantor?
Padder Guarantor is an insurance policy alternative to a personal guarantor. It supports applicants who may benefit from additional backing during your approval process and 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 the policy wording.

What is Padder Deposit?
Padder Deposit is an insurance policy alternative to the traditional last month's rent deposit. It lowers a tenant's move-in cost and protects you for up to one month's base rent in eligible losses from rent default, failure to move in, holdover or abandonment, for the duration of the tenancy (up to ten years), subject to the policy wording.

Who insures the policies?
Both policies are issued by Accelerant Insurance Company of Canada. Padder Underwriting Inc. is a licensed insurance broker and administers the policies on the insurer's behalf.

How does Padder benefit my operation?
Operators use Padder to 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 and compensation

Is there a cost to me?
No. Padder is free for operators. The tenant pays the 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.

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 voluntary and cannot be made a condition of tenancy.

Who qualifies for Padder Deposit?
Padder Deposit is available to tenants you have already approved for a unit. It aligns with your screening; it does not replace it.

Who qualifies for Padder Guarantor?
Padder Guarantor supports 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 usually follow within an hour to a few days of all household members completing their applications. A standalone Padder Deposit application is approved instantly.

Can a tenant cancel the policy mid-tenancy?
No. A tenant can cancel only before the lease is signed, and the premium is refunded in that case. Once the lease is signed, the policy cannot be cancelled and stays in force for the tenancy.

How do I track applications and policy status?
Every Monday at 10:00 a.m. ET, Padder sends your team a Weekly Snapshot email summarising every applicant in progress at your building(s) and the stage each one is at. You also receive direct confirmation when a policy is issued, so your team can complete lease execution.

Coverage and 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 the policy wording.

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 ten years), subject to the policy wording.

What is not covered?
Padder does not cover property damage, non-rent charges, or rent increases beyond the base rent at lease execution. Losses arising from changes to the parties, rent or term of the lease made without Padder's prior written consent are not covered, and neither are losses after an unconsented assignment of the lease. Minor amendments (adding authorised occupants, adding or removing parking or storage, clerical corrections) do not need consent, and a sublet by the tenant does not on its own affect coverage. The full list of exclusions is in the policy wording.

Does Padder cover rent increases?
No. Coverage reflects the base rent at lease execution. Later rent increases are excluded.

What happens if the building is sold?
Coverage follows the building. The successor or affiliated owner with an insurable interest is covered without a consent step.

Does Padder interfere with my right to enforce the lease?
No. You follow your standard lease enforcement process and retain all rights and remedies under the lease and applicable law. You're reimbursed after a Coverage Event occurs.

Claims and reimbursement

What is 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 steps then depend on which policy applies:

Padder Guarantor (with or without Padder Deposit): begin your Initial Action (starting an eviction or rent action, or beginning settlement negotiations) no later than 60 days after the default; a default more than 60 days before your Initial Action is not covered. Submit a Notice of Tenant Default within 45 days of the first missed rent payment. Once you have regained vacant possession after a Coverage Event, re-list the unit within 7 business days and submit your claim within 60 days of the Coverage Event.
Padder Deposit only: no Notice of Tenant Default and no re-listing step. Submit your Last Month's Rent Claim Form within 60 days of the Coverage Event.

Full steps: Operator Claims and Reimbursement: Processes and Timelines and the Claims Centre.

What documents do I need to submit a claim?
The signed lease agreement, rent ledger, legal notices and decisions (for example N4, L1, LTB order), proof of re-listing (Padder Guarantor only), and any other documentation reasonably requested to support the claim.

How are valid claims paid?
Once your claim is complete, it's reviewed on the insurer's behalf. If approved, payment is issued up to the policy limit.

What happens between notification and claim?
After you submit a Notice of Tenant Default (Padder Guarantor), Padder contacts you and the tenant to attempt resolution and keeps your team updated. This does not 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 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. For Padder Guarantor, a late re-listing forfeits only the vacancy-period rent, not arrears accrued before the Coverage Event.

Compliance and 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. See Becoming a Padder Partner.

Does Padder approval override my leasing decision?
No. A Padder Guarantor approval does not obligate you to lease to that applicant. You retain full discretion over your leasing decisions.

Need help?

Policy, coverage and claim questions: underwriting@padder.com. Portal or account: support@padder.com. Phone: +1 (289) 536-7111, Monday to Friday, 9:00 AM to 5:00 PM ET. Claims Centre: resources.padder.com/claims.