All Collections
Property Owner Handbook
Asset Protection Program For Owners
Asset Protection Program For Owners

Transfer resident risk and protect your asset with the Property Damage Liability Waiver (PDLW)

Adam Willis avatar
Written by Adam Willis
Updated over a week ago


Maintaining liability coverage is an absolute necessity when it comes to protecting your investments, and providing residents a simple alternative solution to ensure all units are protected. If something happens to your assets, it hurts your tenant, your cash flow, and even your reputation.

When hiring professional property management you immediately reduce the turmoil of daily management of your real estate portfolio. Nestwell takes protection to the next level by reducing your liability and possible claims against your homeowner's insurance.  Adding in an alternative to traditional renters insurance ensures maximum coverage for you as the homeowner. This program reduces potential claims on your property & casualty policies. Don't overlook this invaluable first layer of protection for you and Nestwell. 


In partnership with RLL LLC, Nestwell Property Management now offers a Property Damage Liability Waiver (PDLW). The PDLW is a unique solution for our clients and homeowners that transfers the financial liability for negligently caused resident losses. The PDLW provides up to $100,000 in coverage for accidental tenant-caused damage to your property. 


The RLL policy covers five specific perils:

  • Fire

  • Smoke

  • Explosions

  • Water Discharge

  • Sewer Backup

Frequently Asked Questions

Which policy is primary? Do I still need homeowner's insurance?  The RLL policy is primary over your other commercial property & casualty policies which means it will be the first insurer to respond to a covered claim. This reduces the number of claims you report to your insurance company from uninsured residents and may help reduce your overall insurance premiums. 

Is there any payment of additional rent? Your rental home is included in the community’s Property Damage Liability Waiver (PDLW) and therefore subject to an additional rent of $14.95 per month.

Replacement Cost? We made sure the RLL policy pays claims on the replacement cost basis. This means the insurance company past the amount it cost to replace an item at the present time according to its current worth. 

What is the claim limit? The most the insurance company will pay for any one claim caused by a negligent resident is $100,000. No aggregate limit applies.

What triggers a loss? Damages caused by negligent acts of the resident or their guest. Damages must be accidental and not the result of intentional or criminal acts.

Who pays the deductible? The RLL policy will pay for damages caused by a covered loss minus the $250 deductible. The $250 is an owner charge. Most insurance policies have deductibles that are significantly higher.

Will the tenant still needs their own policy? The RLL policy is not an HO-4 policy and does not provide property or liability coverage to the resident. Nestwell is the insured under the policy. Residents will be encouraged to secure their own renter's insurance.

What about resident's personal property? In situations where the property owner’s covered damages are under $100,000, as an amenity, affected units may receive up to $15,000 to replace personal belongings as determined by the property owner/manager.

What about fungus, wet rot, dry rot, and bacteria? Included within the occurrence limit but only available if the $100,000 is not exhausted. This is the only coverage that is aggregated, meaning it is the most the insurance company will pay during your 12-month policy period for fungus, wet rot, dry rot, and bacteria.

Will this decrease my ability to rent my units? Nestwell has always required tenants to maintain renter's insurance (HO-4), and trends show it does not impede a property's ability to attract new residents or raise rent over time.

How is this program administered? Nestwell does all the heavy lifting. We will administer the unit placement, monitoring, and reporting that manages the entire process. We will file and process the claims, work with the vendors, and see the work of the claim, and damages is repaired.

What are the policy details? The RLL policy is written on a master policy under the Renters Legal Liability Risk Purchasing Group. With RLL you have no shared or aggregate limits. This means each insured/member receives their own policy limits, and there is no cap on the number of claims that the insurance company will pay during your policy period. 

Did this answer your question?