Surely, we have heard on more than one occasion, when people refer to rental contracts, of surety insurance. It is likely that more than one acquaintance has hired one and talks about the many benefits it implies.
However, not everyone knows the details of this type of insurance, which will undoubtedly make them miss out on the opportunity to hire and enjoy one. For example, what is surety insurance and how does it work?
In the points that follow below, we dwell on the five main questions surrounding this type of insurance.
1. What is it?
The first question is the fundamental one, what are we talking about when we talk about surety insurance? Put simply, it is a contractual means to guarantee the fulfillment of obligations and responsibilities between owners and tenants.
Depending on who contracts a service of this type, such as quote the Iúnigo surety insurance, the policy can cover the payment of rent, expenses or services. This as long as the lease agreement on which it was extended continues to be in force.
2. How does it work?
Basically, surety insurance links three parties: the tenant, the owner and the insurer. They can be hired by the first two parties and the operation is similar, only that they intercede for one or the other.
What the surety insurance does is to respond for the fulfillment of the contract, both helping the tenant and the owner, in the event of non-payment. The insurer is responsible for carrying out the contract when it fails to comply with its responsibilities.
3. What differentiates it from a proprietary guarantee?
From the point of view of the tenant, the most common is to relate the surety insurance with a proprietary guarantee on which the fulfillment of the contract will weigh against any debt. However, this is not so.
The fundamental difference is that guarantees, not being regulated by insurance companies, are less reliable and have less monetary backing. Aspects that make them more ineffective when responding to contractors.
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4. What information and documents are needed?
A brake to decide to contract a surety insurance can be contracting, especially thinking about the information and documents that we must present. But this would be a mistake, since not too many things are needed.
On the part of those involved, both tenant and owner, basic identity data, a telephone number and an email address are needed. With that, plus the contract data such as dates, address of the property and amounts, we are ready to contract it.
5. How do you hire?
Currently, there are still people who mistrust the hiring of certain services due to the complexity of the procedures, something that, practically, is no longer the case. Many even have the possibility of hiring online, without leaving our home.
It is the case of Iúnigo surety insurance, which is contracted 100% online, without the need to visit offices or carry out extra procedures. By correctly presenting the information that we mentioned in the previous point, in 24 business hours we will have the insurance working.
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