Document background
The Lease Rental Bond Policy has emerged as a modern alternative to conventional security deposits in the Indian real estate market. This document is typically used when parties seek to establish a more structured and professionally managed security arrangement for lease agreements. The policy provides property owners with insurance coverage against tenant defaults, property damage, or unpaid utilities, while tenants benefit from not having to lock up large amounts of capital in security deposits. The document must comply with Indian insurance regulations, property laws, and state-specific rental legislation. It includes detailed terms of coverage, premium calculations, claim procedures, and specific obligations of all parties involved. The policy is particularly relevant in commercial leasing and high-value residential rentals where traditional security deposits would be substantial.
