New York City politicians are endorsing the use of deposit insurance to stave off evictions. Here are 5 startups that could benefit.

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• • The nation's housing crisis has been amplified by the coronavirus, as millions of out-of-work Americans are still on the hook for rent. Eviction moratoriums across 27 states may have extended the deadline for payment until the pandemic passes, but renters will still owe the full balance.
  • "Renter's Choice" laws, which require landlords of a certain size to provide alternatives to security deposits, are being retooled to fit the crisis after seeing some legislative success earlier this year.
  • New York City Mayor Bill de Blasio and other city politicians have endorsed a Renter Relief plan that would allow renters to use their security deposit to pay for a month's rent.
  • Renters would then have 30 days to either cover the security deposit in cash or purchase security deposit insurance.
  • We listed five startups that would have a lot to gain from these new policies.
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Record jobless claims foreshadow US unemployment rates that could rise to 32%, higher than the peak of the Great Depression.

With so many people out of work, millions of renters are expected to have trouble paying their rent.

Municipalities and renters have both responded: The Real Deal reported that 27 states have issued eviction moratoriums, while some renters across the country are preparing for rent strikes or coordinated nonpayment of rent.

The moratoriums will prevent money-strapped renters from being evicted during a pandemic, but when they're lifted, renters will be saddled with the cost of every month they didn't pay in full. States like Virginia, Tennessee, and California have signaled support for bills that would freeze mortgage or rent collection, but haven't passed anything yet.

This current crisis is built on top of an already-challenged housing system, as the rising cost of rent had prompted some states like New York, Oregon, and California to rethink their rent laws.

A newer strain of rent policy, "renter's choice" laws, had already been hitting the desks of local, state, and national politicians, offering renters the choice between a traditional security deposit or security deposit insurance. The first law passed in Cincinnati on January 15, with states and cities following with their own laws, some that are close to passing.

These laws are now being retooled to fit the new, urgent timeline for rent payment.

New York City Mayor Bill de Blasio and Manhattan and Brooklyn borough presidents Gale Brewer and Eric Adams have all endorsed a Renter's Relief plan that would allow for renters to use their security deposit to pay a month's rent. Renters would then have to replace the security deposit within 30 days either in cash, or with a new class of security deposit insurance products.

The plan has yet to be taken up by New York State legislators and Governor Andrew Cuomo who would have the authority to put it into play.

On Thursday, de Blasio sent a letter to Cuomo urging him to pass the plan, referencing how " a widespread inability to pay rent" could result in great distress for building owners, preventing them from paying their own mortgages.

If this law were to pass, it could represent the biggest boon yet for the startups that offer deposit insurance.

Among these startups, there are some drastic differences in the cost and the underlying mechanisms behind each insurer. Below, we listed five major players in the space, and explain some of the differences between their products.

Most of these companies are actually more expensive overall than a typical security deposit, which is free, barring the cost of any damage to the property. Instead, these products charge a small fee to lower the upfront cost of moving in, but most of them hold the renter liable for costs of any damage.