Peace of Mind Security Deposit Waiver Program - Apartment

MDM Group has developed and copyrighted the written material for the Security Deposit Waiver Program. The program offers relief to the property manager, unit owner and renter in lieu of the traditional security deposit. The program is backed by Virginia Surety Company - an A rated insurance carrier.

The Peace of Mind Security Deposit Waiver Program has evolved over the past few years due to input from the people who implement the program - the property managers. The Security Deposit Waiver Program was initially designed for vacation rentals. The vacation rental program was so successful that we decided to create a similar program for annual rentals, which include corporate and apartment rentals. Below is information on the self-administered Security Deposit Waiver Program for apartment rentals.

Self-Administered Program

 The self-administered program allows you to administer and pay for losses through a fiduciary claims fund. You collect the premium dollars from the renter. At the end of each month, you send a premium report to MDM, along with 25% of the month’s gross premiums. You keep 15% up front as your administrative fee and put the other 60% into a fiduciary claims fund (can be a savings or checking account). You manage the claims and pay for the losses as they occur out of the fiduciary claims fund. The money that remains in the claims fund after the policy term has ended is yours to keep – 100%.

Virginia Surety Company requires a Letter of Credit (LOC) from each property manager. The purpose of the LOC is to guarantee that there is money available to pay for losses that are incurred under the Security Deposit Waiver Program. If for some reason the property manager does not fulfill their obligations to pay covered claims, Virginia Surety Company becomes obligated to do so. In the event this occurs, Virginia Surety Company is then guaranteed reimbursement of the monies paid out for the claims through the LOC. We do not anticipate this situation occurring, however, Virginia Surety Company must take precautions to protect themselves. The monies in the LOC remain untouched by Virginia Surety Company as long as the property manager fulfills their obligations under the program.

Stop Loss Limit for the self-administered program

Stop Loss coverage is provided so that the property manager has protection against large losses. If losses exceed 75% of the gross premiums in a policy term, the stop loss coverage triggers and reimburses the property manager for covered, paid claims up to a maximum of $1,000,000.

Click here for more information on the Security Deposit Waiver Program

Click here for the Security Deposit Waiver Questionnaire

For more information please call Mike McNasby at 800-600-6617

Copyright ©: MDM Group Associates, Inc. 2001