Stip Loss Shortfall Insurance: for quicker lease buying and selling
When you buy or sell a lease, there can be risk exposure when the book value of the purchased lease is greater than the amount of casualty insurance provided by the lessee. The exposure is the gap between the new book value and the stipulated loss value. Eliminating stip loss exposure is the way to quickly respond to buying and selling opportunities.
Buyers eliminate Stip Loss exposure and free up reserves
Stip Loss Shortfall Insurance eliminates the uninsured difference between the stipulated loss value and the new book value of the lease. This coverage allows you to free up loss reserves for other purposes.
Sellers increase lease value to attract buyers
Add value by including Stip Loss Shortfall Insurance in the lease structure. This sweetens the deal for buyers who are hesitant to take on more risk; thus, leases with insurance in place can be more attractive to them.
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