Frequently Asked Questions

Our vision is to be the “go-to” most trusted brand for insurance products and financial solutions throughout the real estate industry. Our team of experts have pulled together some FAQs to help you navigate the space.

Commercial - Businesses

What is Securiti?

Securiti is an insurance version of a security deposit. Instead of handing over cash or a letter of credit to your landlord, you buy an insurance policy that satisfies the security deposit requirement on your lease.

What kind of leases are eligible?

Office leases with security deposits of $25K or more.

What is the​ application c​ost of Securiti?

$0. It’s free to apply.

What documentation do you require?

Two years of historical financial statements are required to get an initial rate quote. For a full application, we’ll generally need tax returns, a company charter or LLC agreement, and a debt schedule, but we may ask for a few other items depending on your business. Don’t worry though, every tenant works with an account executive in order to make the application as clear and easy as possible.

Will you check my credit score?

Yes, we will need to pull the credit scores of the business and the owner (if we are requiring a personal guarantee). Both checks are hard credit checks.

What types of businesses get approved?

Typically, we look to underwrite and approve profitable businesses.
If you are not a profitable business, we will look to your liquidity position and will require a standard personal guarantee, just like banks do for unprofitable or younger companies! Remember, the personal guarantee is only up to the amount of the security deposit or bond, not the full lease.

How long does it take to get approved?

Approximately 48 hours to get an initial quote, and as fast as 48 hours after quote to finalize the application and pricing (assuming we get all the documentation we need). However, in certain cases, approval times may take longer due to the quality of data and information provided. Our team will be available throughout the process to answer any questions and follow up with any additional documentation requests.

What is the ​cost o​f Securiti?

Rates are determined by the results of our underwriting. The annual rate is usually between 2-12% of the security deposit amount. In some cases, a personal guarantee may be required to get a Securiti policy. The personal guarantee will look very similar to a personal guarantee from a bank.

Will my landlord be ok with this?

Landlords love this product. Securiti meets or exceeds the benefits of a letter of credit, it’s tech-enabled, and a lot more user-friendly. We have millions of square feet of office space already enrolled in Securiti. If your landlord is not enrolled, introduce us, and we’ll take it from there. Once your landlord is enrolled, you’ll get to use this product as a tenant amenity.

How do I pay?

We accept wire transfers as payment. Upon approval, you will receive payment instructions from our team.

How long does a Securiti bond last?

Coverage lasts up to 5 years for any individual bond, but it’s renewable, so you can match the term of your lease, just like how letters of credit are renewable. If you need something shorter than that, we can do that too.

What happens if I want to cancel my Securiti policy early?

You can cancel your Securiti policy at any time, but you will have to give your landlord an alternative form of security deposit.

What happens if my landlord decides to use the policy?

Securiti works like a security deposit. Your landlord can make a claim, if they think you’ve broken your lease (for whatever reason). If they do make a claim, you will have to reimburse us immediately, no questions asked. If you think your landlord shouldn’t have made the claim, that’s something you will need to take up with your landlord (after you reimburse us). By the way, this is no different than what would happen with a letter of credit!

Commercial - Landlords

What is Securiti?

Securiti is an insurance version of a security deposit. It does everything that cash or a letter of credit would do (and more), but it’s better for you and your tenants.

You determine the policy amount (usually the amount of the security deposit in the lease), the tenant pays an annual premium, and then you get to make a claim if the tenant ever breaks the lease.

It’s that simple. It’s iron-clad protection against the risk of tenant default.

How do I get paid if my tenant defaults?

It’s easy. You tell us that your tenant has defaulted and in what amount, and then we approve and pay the claim within 5 business days.

You can do it over our platform, via email, or in-person. (We might ask for a couple details just to improve our own processes, but that will never keep you from getting paid.)

This isn’t a stuffy and old-fashioned insurance policy. We’ve replicated the payment mechanism of a letter of credit because we know that’s what you need.

Is there any reason why I won’t get paid?

There are only reason that we would ever hold up a payment is if a court orders us not to pay.

Why would I use Securiti over cash or letters of credit?

Securiti meets or exceeds the coverage of cash or letters of credit across the board. It’s also a tenant amenity, which will give your leasing team an edge on the competition.

Cost: Securiti is more cost-effective for your tenants, which means you won’t lose deals over security deposit (or compromise on coverage).

Coverage: Securiti is backed by Chubb, rated A++ (safer than a bank), and unlike cash, is bankruptcy remote.

Speed: Our underwriting is elegant and easy. We can issue a policy in as fast as one week, while it can take a bank two months to issue a letter of credit.

Simplicity: Securiti is optimized for the leasing process. We have a fully-integrated platform that makes life easier for leasing, asset management, finance and legal. Coverage, monitoring, and claims all live in one place, so you don’t have to track or review different piles of paper from different banks for every tenant.

We’re experts in both risk and real estate. We’re hardwired to take the risk out of the leasing process, and make life easier for you and your tenants. Does that sound like your bank? We didn’t think so.

Who backs the policy?

Securiti is backed by the Chubb Insurance Company, rated A++ (Superior) by A.M. Best.

How do I get started using Securiti?

It’s easy. Just tell us that you want to use Securiti and we’ll take it from there. Onboarding is super simple, and you don’t have to pay or commit to anything. We’ll move as quickly as you need to.

Do I need to amend my lease?

That’s up to you. Landlords are comfortable just using Securiti interchangeably with any other security deposit, but if you want to amend your lease, we have a simple, pre-drafted rider ready to go.

Can I use this product on both new and existing leases?

You can and you should.

For new leases, just direct your tenants to us instead of asking for a letter of credit. We’ll issue a policy more quickly and with less cost, so you can close the deal and get the protection you need. (The tenant can always go the traditional banking route if they want to, we just don’t think they will.)

For existing leases, all you need to do is introduce us to your tenants. We will replace their existing security deposits with Securiti, put cash back on their balance sheet and improve your protection.

Can the tenant or TheGuarantors cancel the bond?

TheGuarantors has the discretion to cancel the bond, but not without leaving the Landlord protected. If we cancel the bond, you will have the right to make a claim and simply hold the cash (just like you would if a letter of credit got cancelled).

The Tenant can only cancel the bond if they provide an alternative form of security deposit that’s acceptable under the terms of the lease.

What happens when a tenant defaults on premium?

From the landlord’s perspective? Nothing. The coverage remains intact. The coverage does not terminate because the tenant stops paying premium to TheGuarantors.

At worst, we cancel the Securiti bond and pay you a claim in cash, which you then hold as your security deposit.

This is no different than with a letter of credit where the issuer or tenant declines to renew. In either case, you have the option to draw down on the letter of credit, the same option you have with our product.

What happens to Securiti in an asset disposition?

Our product is fully assignable to the new buyer.

Every lender we have spoken with is comfortable with a bond as a security deposit, so long as the balance sheet behind the paper is strong, and Chubb is A++.

What happens if I claim only part of the security deposit?

Similar to Letter of Credit: The same thing that would happen with cash or letter of credit. The coverage would be reduced by the amount of the draw and the tenant would be obligated by the lease to replenish, either with cash, a LOC, or preferably, with us

Am I still covered if the tenant decides not to renew Securiti?

Vs. Letter of Credit: You’re in the same position as you’d be with a Letter of Credit. If a tenant decides not to renew, we will let you know 30 days before expiration, and you will have the opportunity to make a claim. Again, in this case, you’ll have the cash as a security deposit.

What if the tenant’s credit deteriorates and pricing is impacted?

Bond Coverage: The tenant’s risk has nothing to do with your coverage -- we would never abandon you in your time of need.

Bond Repricing: Repricing may occur at renewal (which may lead the tenant to decline renewal). At that point, again, you’re in the same position as you would be with a Letter of Credit: we notify you of non-renewal 30 days before expiration and you have the opportunity to make a claim.

Is Securiti bankruptcy remote?

Same as Letter of Credit: Yes, it’s no different than a letter of credit in that it benefits from the “independence principle.”

Independence Principle: The reason that a LC is bankruptcy remote is because the bank’s obligation to pay you is “independent” from the tenant’s obligations (which would be stayed in the bankruptcy). As an insurer, our obligation is also “independent” in the exact same way.