The major players in the real estate market, including the central government and the autonomous communities, agree on the need to a rental park that can meet the real needs of the population, that guarantees access to housing and that it does so at an affordable price. They also consider that the availability of more rental housing would be one of the most effective solutions to regulate prices in particularly stressed cities, such as Madrid or Barcelona.
Due to the fear of price regulation and the crisis due to Covid-19, which has caused many owners to have lost their income – and without the guarantee of recovering it soon -, the withdrawal of properties from the rental market is a clear reality.
This adds to the inherited fears. Will the tenant leave the apartment as he found it? If you lose your job, will I continue to collect the rent? Who and how can help me if I need legal advice? The answer lies in the unpaid rent insurance, a formula that has gained followers in the last year. So much so, that according to the forecasts of the Spanish Observatory for Non-Payment Insurance (OESA), more than 30% of rental contracts signed in 2021 will include non-payment insurance.
But is it worth hiring them? What advantages can you offer being an owner and planning to rent a home? The housing portal pisos.com provides the keys and most important aspects of these insurances.
You will continue to collect the rent no matter what happens
Many landlords take out non-payment of rent insurance because they believe that the worst thing that can happen to them is that the landlord does not pay the agreed rent, either because he has run out of income or because he has not been responsible. However, Unespa, the employer’s association of the insurance sector, affirms that defaults in reality only occur in little more than 6% of the cases. What does tend to occur more often (93%) is damage to rented homes.
In any case, a non-payment of rent insurance guarantees the insured the collection of the monthly rental income if the tenant does not meet his responsibility. When hiring it is important to verify the period or the number of installments that the insurer will take care of, in order not to be surprised later.
You will be protected against vandalism
Most insurance for non-payment of rent also offers policyholders protection against damage, loss or theft of elements that are part of the house. The limit paid by the insurer is indicated in the personal conditions of the policy, so it is very important to check what amount it is before signing.
This clause is essential to avoid scares in case of evictions or other situations that have generated tensions in the relationship between lessor and lessee, because although it is not the most common, damage of this kind can occur in the home. And in the end they end up being very expensive to the owner.
You will have legal assistance if you need it
When hiring non-payment of rent insurance, we do it in case something does not go well, in this case, the rental contract. In this type of products it is usually including legal assistance, so you don’t have to shell out more money if you have to go to court with the tenant.
When hiring you have to ensure the type of coverage offered by our non-payment insurance. The most common is that legal advice is provided by telephone for any questions that may arise while the contract is in force, drafting and review of legal documents, eviction requests, claims for non-compliance, criminal defense, legal or civil liability.
You will have guaranteed maintenance in the home
Like most insurance, non-payment insurance also offers owners some additional or optional protections, such as house maintenance. This allows to ensure any repair in the property, especially if it is the responsibility of the landlord. If you contract this guarantee, you will have a home technician repairing the damage, which will undoubtedly save you on unexpected repairs, which are the ones that tend to be more expensive.
Other advantages added to non-payment of rent insurance are civil liability (both the landlord and the tenant), direct connections with professionals, replacement of locks or cleaning, either because an eviction has occurred or because, after the end of the lease, the tenant has not left the house in perfect condition.
You will be one hundred percent calm
Unpaid rent insurance is a legal solution you can offer all the tranquility we need when putting a home on the rental market. In addition to protecting against defaults, it provides the certainty of being protected against vandalism, damage and even breakdowns in the home.
Before hiring, it is recommended compare between insurance and study each of the proposals well, in order to choose the insurance for non-payment of the rent that best suits our needs and circumstances.
Futures and Options are financial products that are not straightforward and can be difficult to understand.
This article can be considered an advertising piece for ibroker.es. You can consult more information about the product in the KID available on the web ibroker.es.
– .
