Non-payment of rent insurance: what is it and how does it work?

According to recent market studies on delinquency in urban leases, rental defaults increased last year by 5.2% in our country with respect to 2021.

Moreover, in some Autonomous Communities, such as Catalonia, it is considered that this percentage could be even higher.

In view of these results, the uncertainty of those owners who have just put their property for rent is increasing.

The solution? To have an insurance against non-payment of rent that protects them against this type of situation.

What is non-payment of rent insurance and how does it work?

Its main function is to protect the owner in the event that the tenant does not pay the monthly rent due.

The insurance company is responsible for reimbursing both the rents and the payment of the supplies that are overdue or that the tenant has not paid.

But how far does this type of insurance coverage usually extend?

Tenant’s choice

To ensure that everything goes well in a rental, it starts with choosing the right tenant.

The guarantees include a solvency study to determine the economic capacity of the interested parties before making the final decision.

Home assistance

The non-payment of rent insurance also takes care of the homes.

It includes the dispatch of professionals to the property in the event of unforeseen events related to glass, locks and electricity, among others.

Legal assistance

If a legal proceeding is necessary to get the tenant to leave the property, the insurer will defend the interests of the owner.

How? By providing a lawyer and assuming the natural costs. In this way, the defense of the rental contract and the claim of possible damages to the property are guaranteed.

Maintenance of the property

In the event of an eviction, the insurance company is in charge of the total cleaning of the property.

The cleaning service comes to the property to carry out a proper disinfection and sanitization. Of course, the materials and products necessary for such work are covered.

It is important to emphasize that all these coverages depend to a great extent on the individual needs and pretensions at the time of contracting the policy, as well as on the insurance company chosen.

Our insurance service for the real estate sector

In KM2 Real Estate Services – real estate agency in Barcelona and Madrid – we are experts in advising, recommending and contracting insurance.

We process the scope of coverages and we always take care of them for the benefit of our clients.

Do not hesitate to contact one of our agents to advise you about which insurance is the most suitable according to your needs, we want to help you!