What does the Lease Insurance Policy cover in the Rent or Rental of a Home for Individuals?

Are you thinking of renting a home? Well, although many need to do it, they are also afraid to do it, because renting a house or an apartment carries the risk that the tenant will not pay the rent to the owner. In this article we want to explain to you what the rental insurance policy is about and what it covers in the rent or rental of a home for individuals.

What is the rental insurance policy?

This policy was designed so that homeowners can rent it with the peace of mind that if the tenant does not pay the rent or if the home is mistreated, the insurance company will pay the owner an amount that compensates for that non-payment. And for those who plan to invest in rental housing, being well informed about the coverage is essential to minimize the risks of losses.

What does the rental insurance policy cover in the rent or rental of a home for individuals?

Besides basically cover the non-payment of monthly payments, insurance companies have devised policies that provide coverage for legal advice in case of legal problems between the owner and the tenant. Regarding coverage for legal advice, companies can offer some modalities, namely:

  • Cover the costs of legal proceedingsThese can be covered in whole or in part, and could include attorney’s fees, trial costs, expert’s fees, or damages, for example.
  • If you need legal guidance over the phone, they have that covered too.
  • If the tenant breaches the contract and does things like rent a room even though the contract prohibits it, for example, there are policies that cover Claims for breach of contract.
  • There is also the coverage that provides legal defense to protect the rights of the homeowner within the community of neighbors where the home is located.

handing over house keys

In every lease it is stipulated that the owner of the house, when offering it for rent, must give it in good habitability conditions and for the tenant a commitment is stipulated to keep it in good condition and to carry out the necessary repairs for the use it makes. of housing.

If the tenant causes him damage or there are urgent repairs to be done, a good rental insurance would cover it, since they offer the services of professionals such as plumbers, electricians or others and be required. It is also good until stipulating with the insurance company protection up to damage by natural events.

Other rental insurance considerations

Rental insurance can be purchased by the homeowner or by the renter, but it is always stipulated that the account of the one who receives the economic benefits is that of the homeowner.

If it is the tenant who hires, the company insurance does the analysis and verifies who the tenant is regarding your creditworthiness record. That would give you the peace of mind of seeing if the person in question is trustworthy to contract the policy. If the insurer rejects it, then that indicates that it is not convenient for you to rent the house.

In Spain you can have another advantage by take out a policy of this type: that you can deduct it when you make your income statement. Finally we want to tell you that it is important that you advise yourself well and read the fine print, that all the conditions are clear.

a flat is offered for rent

In any case, before starting the rental activity, we recommend the advice of a real estate manager and you can see what the functions of a real estate manager are on this web portal.

Now, if you are a person who is looking for how to rent a home, we recommend that you see how to rent a home on Airbnb, as this serves as a reference for insurers. As we like to help you, if this article has been useful to you, we would like you to give us your opinion.

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