Financial risk management company OSC announced its Tenant Policy Offering (TPO) protection program at the annual Mortgage Bankers Association convention taking place in Chicago this week.
The TPO program looks to meet the needs of a growing foreclosure-to-rental and REO-to-rental marketplace, the company said, by pairing job-loss/unemployment protection with tenant liability insurance coverage.
"This new product offers tenants protection against the loss of income from unemployment at the same time that it protects the tenant’s and the landlord’s liability," said Don Curtis, senior vice president at OSC.
The job loss/unemployment benefit can provide as much as $2,500 per month for up for one year, according to a company statement.
The liability policy insures the tenant’s premises, similar to renters’ insurance coverage. Optional features include coverage of contents and special risks such as mold, pets and bed bugs. The policy is issued by an A-rated insurance carrier.
OSC says the product represents the first time that renters/landlord insurance for damage to tenant premises has been combined with protection against the loss of a job.
"The program will help keep rental properties occupied, help maintain property conditions and will contribute to the revitalization and stabilization of neighborhoods," Curtis said.