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CRERDI policies cover up to 12 months of defaulted base rent, reimburse legal eviction fees and court costs, provide accelerated claim resolution within 14 business days, and are backed by A-rated surplus lines insurers licensed across eligible states.

Coverage is available for commercial office, industrial, warehouse, retail, and mixed-use properties located in eligible US states. Tenants must have executed written leases and satisfy underwriting credit benchmarks at lease inception.

Commercial property owners, REITs, asset managers, institutional lenders, and licensed insurance agents/brokers acting on behalf of property owners.

Premiums are calculated as an annual percentage of total base rent, tailored to tenant credit tier, property classification, and lease duration. Landlords often pass through premium costs as common area maintenance (CAM) or operating expenses.

When a tenant defaults on base rent, serve the statutory legal notice to cure or quit according to state eviction law, then submit the notice and rent ledger via the CRERDI Claims Portal. Monthly rent indemnification begins following the policy waiting period.

CRERDI provides many great benefits, but there are three things it is not designed to do:

• It is NOT coverage for imminent losses. Like any insurance product, CRERDI is intended to cover unexpected losses. As the saying goes, "it is too late to buy fire insurance when the smoke is rolling out the windows". Similarly, CRERDI insurance cannot be purchased to cover a customer nonpayment situation that has already arisen or a risk about which adverse financial information is already known.
• It is NOT a license to extend credit to bad risks. If a loss results from a lack of due care, it cannot be considered unexpected. And if a loss can be expected, it cannot be insured. Landlords still need to exercise reasonable care when leasing and vetting their potential tenants. Just as wearing a seat belt should not make one feel that it is all right to drive recklessly, having CRERDI insurance does not mean that a landlord can throw caution to the wind.
• It is NOT coverage that can be used for leasing between subsidiaries or affiliates. If one subsidiary or affiliate of a corporate family fails to pay another company that is owned by the same corporate family, it does not count as a customer nonpayment loss. That is an internal corporate issue, not an issue between a tenant and the landlord. The same applies to owner occupied. Nonpayment of rent between a tenant's subsidiaries or affiliates is excluded from coverage under CRERDI insurance.

Policies are typically placed prior to lease commencement or at least 60 days before any expected vacancy transition, with no active default or rent arrears.