Rent default insurance method

• US 20050177488A1
• Filed: 02/05/2004
• Published: 08/11/2005
• Est. Priority Date: 02/05/2004
• Status: Abandoned Application

• Current Assignee: Marc Rexrode
• Original Assignee: Marc Rexrode
• Inventors: Rexrode, Marc
• Application Number:
  US10/773,829
• Publication Number:
  US 20050177488A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass

Abstract

A method of insuring a lessor against default on the part of a lessee may provide indemnification for the lessor if the lessee defaults on a rental agreement. An exemplary method of insuring a lessor may allocate risk of default to the lessee, requiring a lessee of questionable creditworthiness to assume the cost, or at least a portion thereof, associated with appropriate insurance coverage for the benefit of the lessor.

Claims

1. A method comprising:

determining that a lessee fails to qualify for credit in accordance with predetermined creditworthiness considerations;

providing insurance coverage to a lessor entering into a rental agreement with said lessee; and

responsive to said determining, requiring that said lessee bear a cost associated with said providing as a precondition for entering into said rental agreement.

2. The method of claim 1 further comprising indemnifying said lessor if said lessee defaults on said rental agreement.

3. The method of claim 1 further comprising confirming that said lessee satisfies criteria other than said creditworthiness considerations required for entering into said rental agreement.

4. The method of claim 1 further comprising terminating said insurance coverage if said lessee does not default on said rental agreement for a predetermined duration.

5. The method of claim 1 further comprising shifting to said lessor said cost associated with said providing if said lessee does not default on said rental agreement for a predetermined duration.

6. The method of claim 2 wherein said indemnifying comprises reimbursing said lessor for fees due in accordance with said rental agreement.

7. The method of claim 2 wherein said indemnifying comprises reimbursing said lessor for expenses associated with default of said rental agreement.

8. A method of insuring a landlord against rent default comprising:

determining whether a tenant satisfies predetermined creditworthiness considerations;

responsive to a negative result of said determining, providing insurance coverage to said landlord entering into a rental agreement with said tenant; and

requiring that said tenant bear a cost associated with said providing as a precondition for entering into said rental agreement.

9. The method of claim 8 further comprising indemnifying said landlord if said rental agreement is breached for failure to pay rent.

10. The method of claim 8 further comprising confirming that said tenant satisfies criteria other than said creditworthiness considerations required for entering into said rental agreement.

11. The method of claim 8 further comprising terminating said insurance coverage if said rental agreement is not breached for a predetermined duration for failure to pay rent.

12. The method of claim 8 further comprising shifting to said landlord said cost associated with said providing if said rental agreement is not breached for a predetermined duration for failure to pay rent.

13. The method of claim 9 wherein said indemnifying comprises reimbursing said landlord for unpaid rent due in accordance with said rental agreement.

14. The method of claim 13 wherein said indemnifying further comprises reimbursing said landlord for expenses associated with collecting said unpaid rent.

15. A method of insuring a landlord against rent default comprising:

providing insurance coverage to said landlord entering into a rental agreement with a tenant who does not satisfy predetermined credit considerations; and

allocating a cost of said providing to said tenant as a precondition for entering into said rental agreement.

16. The method of claim 15 further comprising indemnifying said landlord if said rental agreement is breached for failure to pay rent.

17. The method of claim 15 further comprising reallocating to said landlord said cost of said providing if said rental agreement is not breached for a predetermined duration for failure to pay rent.

18. The method of claim 16 wherein said indemnifying comprises reimbursing said landlord for unpaid rent due in accordance with said rental agreement.

19. The method of claim 18 wherein said indemnifying further comprises reimbursing said landlord for expenses associated with collecting said unpaid rent.