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Coverage limits and exclusions: what operators should know

Coverage rules and limitations for Padder Guarantor and Padder Deposit, including base rent only, non-renewal, rent increase exclusions, and property-specific availability.

Key limitations

  • Optional product: Padder must never be required as a condition of tenancy.
  • Operator discretion: a Padder approval does not obligate you to lease to a tenant.
  • Tenant cancellation: the tenant can cancel only before the lease is signed. Once the lease is signed, the policy stays in force for the tenancy.
  • Renewals: Padder Guarantor does not renew. Padder Deposit runs for a three-year initial term, then renews annually up to a ten-year maximum.
  • Base rent only: coverage is based on base rent at lease signing and the selected policy limit.
  • No rent increases: coverage does not adjust with annual rent increases.
  • Not renters insurance: Padder does not cover tenant belongings or personal liability.
  • Lease changes: changes to the parties, the rent or the term of the lease need Padder's prior written consent, or losses arising from them are not covered. Minor amendments do not need consent: adding authorised occupants who are not parties to the lease, adding or removing parking or storage, correcting clerical errors, and other minor non-financial changes.
  • Assignment: if the lease is assigned to a new tenant without Padder's consent, losses after the assignment are not covered. A sublet by the tenant does not on its own affect coverage, because the tenant remains responsible for the rent.
  • Change of ownership: coverage follows the building. If the property is sold or restructured, the successor or affiliated owner with an insurable interest is covered without a consent step.

The full list of conditions and exclusions is in the policy wording, effective 21 September 2026.

Term (high level)

  • Padder Guarantor: 3, 6 or 12 months of base rent protection; valid up to 36 months or until move-out.
  • Padder Deposit: one month of base rent (last month's rent); three-year initial term, renews annually up to a ten-year maximum, or until the tenancy ends.

Responsible Party (when requested)

Padder may request a Responsible Party on a case-by-case basis to strengthen a tenant's application. A Responsible Party is not added to the lease and is not legally responsible for rent.

Availability by province

Padder Guarantor and Padder Deposit are currently available for participating residential properties in Ontario. Padder is working towards availability of both products in Alberta and British Columbia.

Important: availability is property specific. Confirm whether a building or portfolio is enabled before presenting options to tenants.

Related: Padder Guarantor guide, Padder Deposit guide, Claims and reimbursement.

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.