The lessor and the tenant can take out insurance for unpaid rents.
When taken out by the owner, this insurance guarantees the payment of the rent in the event of default by the tenant. However, insurance companies only grant this type of guarantee to landlords renting out their accommodation to tenants whose incomes are quite high and who have never encountered payment incidents. In addition, the general conditions of insurance contracts generally impose a waiting period of 3 months (the owner is not compensated until the 4th unpaid rent) and limit the duration of the compensation to 2 years of unpaid rent. . The amount of the premium is 2 or 3% of the monthly rent. Since 1996, the lessor can deduct the amount of the insurance premium from his gross land income. When the contract covers other risks (litigation costs, deterioration of housing, etc.), only the part of the premium covering unpaid rents is deductible.
From now on, tenants also have the possibility of insuring against unemployment, disability and death or more generally against events leading to a decrease in their resources and, consequently, payment difficulties.
But it should be noted that the contracts generally provide for a deductible (no compensation if the risk covered occurs during the first 6 months of the contract) and a waiting period (compensation only occurs from the 3rd month of unemployment, for example).
In addition, the duration of compensation is limited, in most cases, to 12 months.
From www.joptimiz.com, online tax assistance
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