System and method for insuring an entity against tenant default with respect to an income-producing property

• US 20050240448A1
• Filed: 07/13/2004
• Published: 10/27/2005
• Est. Priority Date: 04/27/2004
• Status: Abandoned Application

• Current Assignee: Jeffrey C. Smith
• Original Assignee: Jeffrey C. Smith
• Inventors: Smith, Jeffrey C.
• Application Number:
  US10/890,457
• Publication Number:
  US 20050240448A1
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

According to one aspect of the present invention, a method is provided for insuring an entity with respect to an income-producing property including at least one tenant paying rent to the entity. In accordance with the method of this aspect, a policy is provided to an entity, where the policy defines a default of at least one tenant of the property based upon a financial inability of at least one tenant to pay rent to the entity. The entity can then be insured under the policy, where the entity is insured against loss of a income due to default of at least one tenant of the property. Additionally, the entity be a buyer arrangement engaged in a communication with a seller arrangement regarding the property. In such instances, the buyer arrangement can be insured after the parties conclude a real estate transaction involving the property.

Claims

1. A system for insuring an entity with respect to an income-producing property including at least one tenant expected to pay rent to the party, the system comprising:

a facilitator arrangement capable of providing a policy to an entity, the policy defining a default of at least one tenant of the property based upon a financial inability of at least one tenant to pay rent to the entity, and wherein the facilitator arrangement is capable of insuring the entity under the policy, the entity being insured against loss of a income due to default of at least one tenant of the property.

2. A system according to claim 1, wherein the facilitator arrangement is capable of providing a policy that also defines a level of protection, the level of protection having been determined based upon a percentage of an income received by the entity from the property.

3. A system according to claim 2, wherein the facilitator arrangement is capable of providing a policy that defines a level of protection comprising a percentage of a net operating income (NOI) received by the entity from the property.

4. A system according to claim 1, wherein the facilitator arrangement is capable of insuring the entity by determining a policy benefit, and thereafter remitting the policy benefit to the entity if a tenant defaults under the policy.

5. A system according to claim 4, wherein the facilitator arrangement is capable of determining a policy benefit based upon a rental income due the entity from the defaulting tenant.

6. A system according to claim 5, wherein the facilitator arrangement is capable of determining a policy benefit based upon an income due the entity from the property before the tenant defaults, and an income due the entity from the property after the tenant defaults, and wherein the income due the entity from the property before and after the tenant defaults is at least partially based upon the rental income due the entity from the defaulting tenant.

7. A system according to claim 1, wherein the entity comprises a buyer arrangement, wherein the facilitator arrangement is also capable of engaging an initiating party in communication with an initiated party regarding the property, wherein the initiating party comprises one of the buyer arrangement and a seller arrangement, and the initiated party comprises the other of the buyer arrangement and the seller arrangement, and

wherein the facilitator arrangement is capable of providing the policy and insuring the entity after the parties conclude a real estate transaction regarding the property.

8. A system according to claim 7, wherein the facilitator arrangement is capable of engaging the parties for an engagement period, wherein the facilitator arrangement is further capable of restricting the engaged parties from communicating with other parties during the engagement period, the other parties comprising at least one of at least one other buyer arrangement and at least one other seller arrangement, and wherein restricting the engaged parties comprises restricting the engaged parties to thereby facilitate the parties concluding a real estate transaction regarding the property.

9. A system according to claim 8, wherein the facilitator arrangement is capable of providing at least one of a buyer listing and a property listing, wherein the buyer listing includes at least one buyer arrangement, and the property listing includes at least one property of at least one seller arrangement, wherein one of the listings includes the initiating party and the other listing includes the initiated party, and wherein the facilitator arrangement is also capable of receiving a selection of an initiated party from one of the listings before engaging the parties in communication, the initiated party being selected by the initiating party.

10. A system according to claim 9, wherein the facilitator arrangement is capable of restricting the engaged parties from communicating by restricting access to the initiating party in the respective listing including the initiating party, and restricting access to the initiated party in the respective listing including the initiated party.

11. An insurance system comprising:

an entity associated with an income-producing property including at least one tenant expected to pay rent to the entity; and

a facilitator arrangement capable of insuring the entity against loss of a income due to a default of at least one tenant of the property, the default of at least one tenant comprising a financial inability of at least one tenant to pay rent to the entity.

12. An insurance system according to claim 11, wherein the facilitator arrangement is capable of insuring the entity with a level of protection, the level of protection having been determined based upon a percentage of an income received by the entity from the property.

13. An insurance system according to claim 12, wherein the facilitator arrangement is capable of insuring the entity with a level of protection comprising a percentage of a net operating income (NOI) received by the entity from the property.

14. An insurance system according to claim 11, wherein the facilitator arrangement is capable of insuring the entity by determining an insurance benefit, and thereafter remitting the insurance benefit to the entity if a tenant defaults.

15. An insurance system according to claim 14, wherein the facilitator arrangement is capable of determining a insurance benefit based upon a rental income due the entity from the defaulting tenant.

16. An insurance system according to claim 15, wherein the facilitator arrangement is capable of determining a insurance benefit based upon an income due the entity from the property before the tenant defaults, and an income due the entity from the property after the tenant defaults, and wherein the income due the entity from the property before and after the tenant defaults is at least partially based upon the rental income due the entity from the defaulting tenant.

17. An insurance system according to claim 11, wherein the entity comprises a buyer arrangement, wherein the facilitator arrangement is also capable of engaging an initiating party in communication with an initiated party regarding the property, wherein the initiating party comprises one of the buyer arrangement and a seller arrangement, and the initiated party comprises the other of the buyer arrangement and the seller arrangement, and

wherein the facilitator arrangement is capable of insuring the entity after the parties conclude a real estate transaction regarding the property.

18. An insurance system according to claim 17, wherein the facilitator arrangement is capable of engaging the parties for an engagement period, and wherein the facilitator arrangement is further capable of restricting the engaged parties from communicating with other parties during the engagement period, the other parties comprising at least one of at least one other buyer arrangement and at least one other seller arrangement, and wherein restricting the engaged parties comprises restricting the engaged parties to thereby facilitate the parties concluding a real estate transaction regarding the property.

19. An insurance system according to claim 18, wherein the facilitator arrangement is capable of providing at least one of a buyer listing and a property listing, wherein the buyer listing includes at least one buyer arrangement, and the property listing includes at least one property of at least one seller arrangement, wherein one of the listings includes the initiating party and the other listing includes the initiated party, and wherein the facilitator arrangement is also capable of receiving a selection of an initiated party from one of the listings before engaging the parties in communication, the initiated party being selected by the initiating party.

20. An insurance system according to claim 19, wherein the facilitator arrangement is capable of restricting the engaged parties from communicating by restricting access to the initiating party in the respective listing including the initiating party, and restricting access to the initiated party in the respective listing including the initiated party.

21. A method for insuring an entity with respect to an income-producing property including at least one tenant expected to pay rent to the entity, the method comprising:

providing a policy to an entity, the policy defining a default of at least one tenant of the property based upon a financial inability of at least one tenant to pay rent to the entity; and

insuring the entity under the policy, the entity being insured against loss of a income due to default of at least one tenant of the property.

22. A method according to claim 21, wherein providing a policy comprises providing a policy that also defines a level of protection, the level of protection having been determined based upon a percentage of an income received by the entity from the property.

23. A method according to claim 22, wherein providing a policy that also defines a level of protection comprises providing a policy that defines a level of protection comprising a percentage of a net operating income (NOI) received by the entity from the property.

24. A method according to claim 21, wherein insuring the entity under the policy comprises:

determining a policy benefit; and

remitting the policy benefit to the entity, and wherein determining a policy benefit and remitting the policy benefit occur if a tenant defaults under the policy.

25. A method according to claim 24, wherein determining a policy benefit comprises determining a policy benefit based upon a rental income due the entity from the defaulting tenant.

26. A method according to claim 25, wherein determining a policy benefit comprises determining a policy benefit based upon an income due the entity from the property before the tenant defaults, and an income due the entity from the property after the tenant defaults, and wherein the income due the entity from the property before and after the tenant defaults is at least partially based upon the rental income due the entity from the defaulting tenant.

27. A method according to claim 21, wherein the entity comprises a buyer arrangement, wherein the method further comprises:

engaging an initiating party in communication with an initiated party regarding the property, wherein the initiating party comprises one of the buyer arrangement and a seller arrangement, and the initiated party comprises the other of the buyer arrangement and the seller arrangement, and

wherein providing a policy and insuring the entity occur after the parties conclude a real estate transaction regarding the property.

28. A method according to claim 27, wherein engaging the parties comprises engaging the parties for an engagement period, and wherein the method further comprises:

restricting the engaged parties from communicating with other parties during the engagement period, the other parties comprising at least one of at least one other buyer arrangement and at least one other seller arrangement, wherein restricting the engaged parties comprises restricting the engaged parties to thereby facilitate the parties concluding a real estate transaction regarding the property.

29. A method according to claim 28 further comprising:

providing at least one of a buyer listing and a property listing, wherein the buyer listing includes at least one buyer arrangement, and the property listing includes at least one property of at least one seller arrangement, wherein one of the listings includes the initiating party and the other listing includes the initiated party; and

receiving a selection of an initiated party from one of the listings, the initiated party being selected by the initiating party,

wherein providing at least one of the listings and receiving a selection of an initiated party occur before engaging the parties in communication.

30. A method according to claim 29, wherein restricting the engaged parties from communicating comprises restricting access to the initiating party in the respective listing including the initiating party, and restricting access to the initiated party in the respective listing including the initiated party.