Unpaid rent insurance is not the most common insurance in real estate. Many owners rent out their property without even knowing about this protection, which is nevertheless essential. Find out all about unpaid rent insurance and its advantages.
What is unpaid rent insurance?
The unpaid rent insurance is an insurance which aims to guarantee the payment of the rents. This insurance is therefore a kind of rent protection, because it takes over in case of absence or late payment by the tenant.
All landlords can take out unpaid rent insurance when they rent their property to tenants. The unpaid rent guarantee can be taken out as part of a new lease, or when a tenant is already in the property.
Each type of rent default insurance may include different guarantees. Thus, it is possible to be covered in case of property damage, during a dispute brought before a court, or in case of failure of the building's insurance following a disaster. As the costs generated by a rental dispute or a claim are particularly high, unpaid rent insurance often proves to be very useful.
Why take out unpaid rent insurance?
It is important to know that in France, more than 1 million tenants are currently concerned by problems of unpaid rent and/or rental charges. And this figure tends to increase at the same time as job insecurity. This is therefore one of the reasons why unpaid rent insurance is proving to be indispensable.
Unpaid rent insurance is a real guarantee against unpaid rents from tenants. As a landlord, this insurance gives you peace of mind. By subscribing to it, it also limits the risk taking related to the rental of your property.
It is an interesting insurance, because it generally covers the main fears of landlords, namely unpaid bills, as well as property damage.
Before taking out unpaid rent insurance, make sure you compare the different guarantees offered by the insurance company you are applying for. Indeed, not all insurance companies include the same services and do not always charge the same price for them. Opt for the insurance that best suits your needs, so that you can rent your apartment or house with complete peace of mind.