---
title: Padder Lease Protection reimbursement requests | Padder
description: "How to submit a Padder Lease Protection reimbursement request for a commercial lease default: notify Padder once rent is 15 days unpaid, choose your path, then submit your requests."
image: https://resources.padder.com/hubfs/Partner_Brand_Centre/Padder_Link_Preview_1200x630.png
---

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For commercial property operators

# Padder Lease Protection Requests

For commercial lease defaults covered under the Padder Lease Protection warranty. To remain eligible, follow the steps and timelines below.

## Step 1: Tenant Default Notification

Time sensitive

### Notify Padder once rent is 15 days unpaid

Or after the longer period your lease sets. Your first payment can’t be made until we have your notice.

**Have ready:** warranty number, property and unit, key dates, current arrears.

**Recommended upload:** tenant communication log (email threads, call notes, or a consolidated log).

[Notify Padder](https://rn6yj.share.hsforms.com/2SYmaDKBeS364k-mnQkKoKw)

## Step 2: Choose your path

Pick the path that fits to see its steps, deadlines and documents.

### Termination

**When:** ending the lease and taking back possession

**Important:** the warranty pays once the lease is formally terminated

[View steps](https://resources.padder.com/requests/padder-lease-protection#lp-termination)

### Distraint

**When:** recovering arrears through seizure or auction while the tenant occupies

**Important:** distraint on its own doesn’t lead to a reimbursement, so talk to us first

[View steps](https://resources.padder.com/requests/padder-lease-protection#lp-distraint)

### Legal action (suing for unpaid rent or damages)

**When:** pursuing a judgment or settlement

**Important:** termination is required before pursuing this route

[View steps](https://resources.padder.com/requests/padder-lease-protection#lp-legal-action)

### Rent acceleration

**When:** enforcing an acceleration clause

**Important:** you still need to terminate; the warranty pays the same as any termination

[View steps](https://resources.padder.com/requests/padder-lease-protection#lp-rent-acceleration)

### Bankruptcy or insolvency

**When:** the tenant files or is insolvent

**Important:** a stay of proceedings may limit enforcement actions

[View steps](https://resources.padder.com/requests/padder-lease-protection#lp-bankruptcy)

### Glossary and definitions

Base rent, tenant rent default, Warranty Limit, eviction costs, re-listing, relief from forfeiture and more.

[View definitions](https://resources.padder.com/requests/padder-lease-protection#lp-glossary)

Not sure which path applies?

**Email underwriting@padder.com**

Include your full name, warranty number, property and unit, and a brief summary. A licensed agent will respond.

Steps for each path

Termination path

Use this path when your tenant has stopped paying rent and you’re ending the lease.

#### Before you start

- Rent is in default once it has been unpaid for 15 days, or the longer period your lease sets, and you’ve notified the tenant of the default the way your lease requires.
- Padder Lease Protection pays only once the lease is formally terminated under the lease and the Commercial Tenancies Act. If you re-enter or re-let without terminating, the warranty won’t pay.

#### Steps

1. Notify Padder. Submit the Tenant Default Notice as soon as rent is 15 days unpaid. Your first payment can’t be made until we have it.
2. Serve a Notice of Termination that meets your lease and the Commercial Tenancies Act.
3. Submit your Initial Request with the documents below. Once the conditions are met, we pay the first month within 25 days of receiving your Tenant Default Notice.
4. Re-list the premises. Make the vacancy public on at least one commercial listing platform, such as LoopNet, Spacelist or a brokerage site.
5. Each month after, submit the Continuation Form with an updated Tenant Default Notice and your re-listing evidence. We pay within 5 business days of the end of each month.
6. Submit your Final Request for eviction costs, if any. We reimburse third-party eviction legal fees, eviction service fees and court fees once, up to $10,000, if the tenant leaves within 120 days of your Notice of Termination.

The forms are in Step 3 below.

#### What the warranty pays

A share of the monthly base rent, by month since the default: 100% for month 1, 75% for months 2 to 4, 50% for months 5 to 7 and 25% for months 8 to 12. Base rent excludes taxes, maintenance and insurance. Every payment, including eviction costs, counts toward your Warranty Limit. If the lease has been in effect for less than a year, the warranty pays up to 11 months, because the tenant has already paid the first month.

Payments stop when you sign a new lease for the premises, the Warranty Limit is reached, or the warranty term ends.

#### When the warranty won’t pay

- The tenant is contesting the termination, for example by applying for relief from forfeiture.
- The lease is reinstated or the tenant is let back in. Tell us right away: any payments already made must be refunded.

#### Documents to have ready

- The signed lease
- Proof the tenant paid the first month’s rent
- How you applied any security deposit to the unpaid rent
- Your Notice of Termination and proof it was served under the lease and the Commercial Tenancies Act
- An up-to-date statement of the tenant’s rent payments and arrears
- Proof of the business insurance and the property and liability insurance your lease requires
- Each month: your re-listing evidence
- For eviction costs: invoices for the legal, service and court fees

Distraint path

Use this path if you’re considering distraint (also called distress) while the tenant is still in the premises.

#### What to know first

Padder Lease Protection pays once the lease is formally terminated. Distraint is only available while the lease is still in place and the tenant occupies the premises, so distraint on its own doesn’t lead to a reimbursement.

Before you distrain, email underwriting@padder.com with your warranty number. We’ll confirm in writing how it affects any request you make later.

#### If you go ahead

- Use a bailiff and follow your lease and the Commercial Tenancies Act.
- Keep the notice you gave the tenant, the bailiff’s report of what was seized and its value, the auction records, and your accounting of how the proceeds and the bailiff and auction costs were applied to the arrears.

- If you later end the lease, follow the [Termination](https://resources.padder.com/requests/padder-lease-protection#lp-termination) steps and send us those records, so what you recovered is applied before we calculate any payment.

Legal action path

Use this path if you plan to take the tenant to court or negotiate a settlement.

#### Terminate the lease first

If you keep the lease in place while you sue for unpaid rent or damages, the warranty won’t pay. Follow the [Termination](https://resources.padder.com/requests/padder-lease-protection#lp-termination) steps before you start legal proceedings.

#### Tell us before you sue

Once we make a payment, Padder takes over your right to recover that amount from the tenant, and we may need to coordinate or settle that recovery. Email underwriting@padder.com with your warranty number before you file, so we’re not both pursuing the same amounts.

#### What the warranty pays

- The monthly base rent payments set out in [Termination](https://resources.padder.com/requests/padder-lease-protection#lp-termination).
- Eviction costs once, up to $10,000: third-party eviction legal fees, eviction service fees and court fees, if the tenant leaves within 120 days of your Notice of Termination.
- Amounts above base rent, such as damages, utilities or penalties, aren’t paid by the warranty. You can pursue them yourself.

If you recover money through a judgment or settlement for amounts we’ve already paid, tell us so we can adjust.

#### Documents to have ready

- Everything listed in [Termination](https://resources.padder.com/requests/padder-lease-protection#lp-termination)
- A copy of your court filing, and the judgment or settlement once you have it
- A breakdown of what you’re claiming

Rent acceleration path

Use this path if your lease lets you demand the rent for the rest of the term when the tenant defaults.

#### You still need to terminate

If you accelerate the rent without ending the lease and re-letting, the warranty won’t pay. Follow the [Termination](https://resources.padder.com/requests/padder-lease-protection#lp-termination) steps.

#### What the warranty pays doesn’t change

It’s the same monthly base rent schedule and eviction costs as any termination, up to your Warranty Limit. Any accelerated balance above what the warranty pays is yours to recover.

#### Documents to have ready

- Everything listed in [Termination](https://resources.padder.com/requests/padder-lease-protection#lp-termination)
- Your notice of acceleration and proof it followed your lease
- Your calculation of the accelerated amount

Bankruptcy or insolvency

Tell us right away. Email underwriting@padder.com with your warranty number as soon as you receive notice.

#### What to know

A bankruptcy or proposal usually brings a stay of proceedings. That generally stops you from enforcing the lease, including terminating it, without the trustee’s or the court’s permission. Don’t serve a Notice of Termination or start distraint until you know what the stay allows.

#### Steps

1. Email us with the notice you received.
2. File a proof of claim with the trustee for the unpaid rent.
3. Send us the notice of stay of proceedings, your proof of claim and an up-to-date statement of arrears.
4. We’ll confirm your next steps in writing. What happens next depends on whether the lease is disclaimed, assigned to someone else or continued.

Glossary and definitions

- **Base rent:** the monthly rent in the lease, not including taxes, maintenance or insurance. The warranty pays base rent only.
- **Tenant rent default:** rent unpaid for at least 15 days, or the longer period your lease sets, after you’ve notified the tenant of the default the way your lease requires.
- **Tenant Default Notice:** the form you send Padder when a default happens, and again each month while payments continue.
- **Notice of Termination:** a valid notice ending the lease under the lease and the Commercial Tenancies Act.
- **Warranty Limit:** the most Padder Lease Protection will pay in total, including eviction costs. It’s on the first page of your agreement.
- **Eviction costs:** third-party eviction legal fees, eviction service fees and court fees. Reimbursed once, up to $10,000, within the Warranty Limit.
- **Re-listing:** making the vacant premises publicly available for lease on at least one commercial listing platform.
- **Mitigation:** reasonable steps you take to reduce the loss, such as re-listing quickly and keeping records.
- **Possession:** getting the premises back after the lease ends.
- **Distraint (distress):** seizing and selling a tenant’s assets to recover arrears while the lease is still in place.
- **Relief from forfeiture:** a court order letting the tenant back in after termination. If the lease is reinstated this way, or by agreement, the warranty doesn’t pay and any payments must be refunded.
- **Arrears statement:** a dated record of rent charged, rent paid and the balance owing.

## Step 3: Submit your requests

Deadlines and required documents depend on your path. See the steps above.

Initial

### Initial Request

Submit once you’ve served your Notice of Termination.

[Begin Request](https://share.hsforms.com/1PVkFmzE2T5GDTBkgInH0xQrn6yj)

Final

### Final Request

Submit for eviction costs once the tenant has left the premises.

[Begin Final Request](https://share.hsforms.com/1ieJ3m4b4QgKoARw74WbGDQrn6yj)

Monthly

### Continuation Form

Each month after your Initial Request, with an updated Tenant Default Notice and your re-listing evidence.

[Begin Continuation Form](https://share.hsforms.com/1vmAmPn69SI-X3JVV5Y0WOgrn6yj)

## Questions? Email the right team.

Support handles the process. Licensed agents handle anything about coverage.

General help

### [support@padder.com](mailto:support@padder.com)

Account, forms, documents, payments and anything about the process.

Policy or warranty questions

### [underwriting@padder.com](mailto:underwriting@padder.com)

What is covered, your policy or warranty terms, and claim decisions. These need a licensed agent; Support cannot give policy or warranty guidance. A licensed insurance agent will respond.

For the fastest resolution, include your full name, the building address, the warranty number if you have it, a brief summary, and any screenshots or documents.

![Padder](https://padder.com/wp-content/uploads/2025/02/Large-logo.svg)

Padder Underwriting Inc. is a licensed insurance broker headquartered in Toronto, Ontario. Padder Lease Protection is a warranty, not an insurance policy. For the full terms, conditions and exclusions, please read your warranty agreement.

Need help?Email underwriting@padder.com with your warranty number.  
Our team is on email and phone Monday to Friday, 9am to 5pm ET.

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