Due to the boom in rentals in, homeowners who have decided to rent them are interested in the insurance policy for non-payment of rent, to ensure the collection of rents. These are the tips we offer you so that you can take out insurance with a full guarantee. For more details you can get help from experts such as Danijela Quenzler.
Tips for Hiring Rent Non-Payment Insurance
- Contract with a trusted insurer
- Hire 12-month income coverage
- Take into account how long you want to rent your home
- Choose the tenant correctly
- Obligations of the owner
- Waiting period
- Detail the characteristics of the home
Report the incident as soon as possible
When we talk about insurance for rental homes, we only think that the policy covers intentional damages that could be caused by tenants and legal defense if they have legal problems such as, for example, an eviction.
Some rental insurance also increasingly offers coverage for non-payment of rent.
These insurance policies for non-payment of rental income are on the rise and therefore it is necessary to take into account the following tips before hiring it.
Contract with a trusted insurer
Before contracting, it is important to correctly choose an insurance company that is a legal entity since there are insurers that offer non-payment of rent insurance policies that are not.
Use extreme caution if you contact a private company that guarantees rent collection and does not have any type of official financial control.
Hire 12-month income coverage
It is important when you decide to take out this non-payment of rent insurance that the policy has coverage for at least 12 months of rent, although you have the option of taking out up to 18 months.
We give this advice because in addition to the tenant not paying the rent for some time, they may also request eviction and they must be protected during this time.
Consider how long you want to rent your home.
The duration of time for which you want to have your home rented is essential if you are going to take out rent non-payment insurance since the insurance conditions are not the same.
Therefore, reflect on the most appropriate conditions of your insurance depending on the length of time you will rent the home.
Choosing the tenant correctly
Insurers assess the tenant through a risk report to find out if there is a risk of non-payment of rent.
For your part, we advise you that before deciding on one candidate or another, you also assess the risk that may entail making a rental contract with a person who does not offer guarantees or who generates distrust.
When you evaluate the tenant, you will be able to determine if the coverage you must purchase must include specific coverage, for example regarding material damage that may be caused to the home.
Owner Obligations
A very important point is that to collect from non-payment of rent insurance, there must be a judicial resolution in your favor so that the insurance company can proceed to pay the outstanding or late rent.
If the owner does not have the housing documentation in order, he will not be able to contract non-payment of rent insurance. The necessary documentation is the following:
- Β Β Β Β Housing deeds
- Β Β Β Β Correctly signed housing rental contract
- Β Β Β Β Bail deposit
- Β Β Β Β Fiscal obligations up to date: taxes
Grace period
If the rental non-payment insurance contract is for a short rental, you must bear in mind that in many insurances there is a waiting period, which means that until the waiting period ends the insurance coverage will not be effective.
Detail the characteristics of the home
One point to keep in mind when writing a rental contract is to take photographs and inventory the home and include it as an annex to the contract so that the state of the home is recorded at the time of renting it.
