Insurance for landlords
Rent guarantee insurance
Guaranteed rent and legal expenses cover if the tenant stops paying.
What the policy guarantees*
- Up to 12months' rent covered
- Depending on the plan, from the date the default is reported.
- Priortenant screening
- Before signing, to reduce the risk from the outset.
- Includedlawyer and court representative
- The entire court process, at no additional cost to you.
*Indicative covers and limits: these vary between insurers and plans.
Clause one
Why this insurance exists.
For those who live off letting a flat, the risk is not fire: it is the tenant who stops paying and the months an eviction takes. This policy advances the unpaid rent and covers the lawyer. It also checks the tenant's solvency before the lease is signed.
Clause two
What the policy covers.
- Unpaid rent for the contracted period
- Legal expenses and eviction proceedings
- Tenant solvency check before letting
- Malicious damage caused by the tenant
- Lock change after repossession
- Advice on drafting the lease
Clause three
What happens if the tenant stops paying.
With the policy, you do not have to wait: the insurer advances the rent and the lawyer takes action.
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Month 1
First missed rent payment
You let us know and we report the claim to the insurer. Formal demand for payment is served on the tenant.
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Month 2
The claim begins
The policy's lawyer prepares the eviction claim and the claim for rent arrears.
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During the proceedings
You receive the rent
The insurer pays the unpaid months as agreed in the policy, without waiting for the judgment.
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Final stage
You get the property back
After the eviction, the lock is changed and, if the policy covers it, malicious damage is repaired.
Eviction. Removal from the property ordered by the court.
Clause four
Ley 29/1994 de Arrendamientos Urbanos (Urban Tenancies Act), Article 36
Deposit and guarantees: what the law allows.
For residential lettings, the statutory deposit is one month's rent. The law also allows additional guarantees to be agreed, which may not exceed two months' rent in tenancies of up to five years, or up to seven years if the landlord is a legal entity.
That cushion rarely covers a full set of proceedings. Rent guarantee insurance supplements it with guaranteed rent and legal expenses cover.
One month's deposit for residential lettings
Additional guarantee capped by law
Insurance covers what the deposit cannot
Annex I
What we need to screen the tenant.
A prior solvency check is the best cover. Tick what you already have.
Clarifications
Frequently asked questions.
How many months does it cover?
Depending on the plan, between six and twelve months are usually covered. We compare what each insurer offers against your rent.
Can you screen the tenant before signing?
Yes, and it is the most useful part: the insurer assesses their solvency and, if it is not approved, you know before handing over the keys.
Does it cover damage to the property?
Most policies include malicious damage by the tenant, subject to a limit. We check this because it varies considerably between insurers.