Why Property Owners Are Turning to Captive Insurance in 2025
Property insurance costs are rising fast and traditional policies aren’t keeping up with the risk profile of today’s multifamily assets. That’s why savvy owners and operators are turning to captive insurance as a smarter, more profitable alternative.
But what if you could reduce risk, boost NOI, and earn back your premium surplus without the capital and hassle that captives usually demand?
That’s exactly what RLL’s Captive Program delivers.
What Is the RLL Captive Insurance Program?
The RLL Captive is a turnkey solution designed for multifamily, senior, and student housing portfolios with 1,500+ insured units. It combines the benefits of a group captive or private cell without requiring capital contribution or collateral.
Once accepted, implementation takes less than 30 days, and it’s backed by an A+ AM Best rated carrier.
In short:
- You maintain control without the burden
- All profits are returned to you based on your share of premium
- You earn revenue while protecting your properties from resident-caused damage
How It Works: Profit from Protection
Tenants participate in a Tenant Liability (TL) property damage waiver built directly into their lease. It satisfies the lease’s indemnity clause without renters insurance hassles (credit checks, renewals, lapses).
Here’s what happens:
- Tenants pay a small fee with rent (no collection required)
- RLL manages claims, billing, training, onboarding, and audits
- Claims are capped at $100k, $200k, or $300k per event
- At year-end, surplus premiums come back to you
You’re not just managing risk you’re turning it into predictable monthly income.
Real Numbers That Matter
- No capital contribution required
- 100% of profits returned pro rata
- Coverage for personal property (up to $15k) under named peril losses
Who Can Use the Program?
- Multifamily owners and developers
- Senior or student housing operators
- Insurance brokers and consultants (yes, you earn monthly commissions while helping your clients)
- Property managers seeking NOI improvement
RLL even supports scaling into your own captive cell as your portfolio grows seamlessly using existing infrastructure.
Getting Started Is Simple (6 Steps in 30 Days)
- Submit application & property details
- RLL underwrites your submission
- Receive & sign the participation agreement
- Training and tech integration completed
- Onboard tenants via simple online process
- Start tracking coverage & earning profit
Why Choose RLL Over Other Captive Solutions?
| Feature | RLL Captive | Traditional Captive |
|---|---|---|
| Capital required | ❌ None | ✅ Often required |
| Turnaround time | ⚡ 30 days | 🐢 6+ months |
| Backing | ✅ A+ AM Best carrier | Varies |
| Claims admin | ✅ Included | ❌ Additional cost |
| Distribution of profit | ✅ 100% returned | ❓ Often unclear |
| Support for brokers | ✅ Commission paid | ❌ Limited options |
Your Hidden NOI Engine
With renters insurance lapse rates over 50%, relying on tenants to insure your risk is outdated. Captive insurance is not only a better solution it’s a revenue opportunity.
This isn’t just risk management. It’s profit engineering.
Ready to Learn More?
Call our Salt Lake City office at (801) 994-0237 to learn more and don’t forget to download our FREE Captive Information Sheet here.
