Rental insurance protects you primarily against intentional damages that may cause the tenants and offer you legal defense in case of legal problems with the lease. In addition, most offer coverage for non-payment of rent , which is responsible for covering the risk of the tenant stop paying.
In fact, this insurance for non-payment of rent is one of the most demanded in the home branch. The figures speak for themselves: in 2017 31% more of these policies were contracted with respect to the previous year .1. Hire rental insurance with a trustworthy insurer
Therefore, the first advice to hire a general rental insurance is always with a legal entity , officially recognized and reading carefully and completely the clauses of the contract to be signed.
In addition, we can talk about other recommendations to hire rental insurance:
- Think about the temporality
We refer to the time you want to rent your home . Keep in mind that the conditions of the contract you sign with the tenant bind you as the owner of the house, which may also affect your rental insurance. So, if you want to rent your home for a short period (during the summer holidays, for example), you will need different conditions than if it is a long-term rental.
- Study your future tenants
Although the insurer will make an assessment to know the risk of default that can create a tenant (studying, for example, your payroll or your work contract), as owner you must know your tenant to assess whether it is appropriate to cover more or less extensive coverage. Thus, if your potential tenants generate distrust or you think that they can cause material damage to your home, you can choose specific coverage in case it happens.
- Take your obligations into account
As the owner of the home, you have some obligations that you should know about rental insurance. The first one is, precisely, the payment of the same, which always falls on the owner , never on the tenant.
In addition, you must bear in mind that in the insurance of non-payment of the rent there will have to be a judicial resolution in your favor so that the insurer makes cash the payment of the overdue or pending incomes .
Of course, to hire rental insurance you must have all the documentation of the apartment in order, that is, the deed, the contract duly signed, the deposit of the deposit, your daily tax obligations, etc.
- Take into account the grace period
In some insurances, there may be a grace period in which the insurer does not take care of the expenses of an accident . This grace period is defined in the insurance contract and begins to count from the moment in which it is signed. Once this grace period ends, insurance coverage will begin to be effective . So, you should keep this in mind if your goal is to take out insurance for a short-term rental .
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Extra Tip – Cover your back
In order to facilitate the task of the insurer when hiring a rental policy, it is advisable that you offer all the possible details about the apartment or the house you want to insure .
It is even recommended that you have photographs or a video of the state of the house before renting it . In case the dwelling suffers intentional damages on the part of the tenant, it will be easier to show what has really happened in a judicial process if you have the documentation prepared. Keep in mind that claims through court can be perpetuated or complicated when the accusations of lawyers are crossed, so as an owner it is advisable to be cautious.
Summary of the tips for hiring a good rental insurance
Hire a rental insurance with a trustworthy insurer
Think about how long you are going to rent the property
Study your future tenants
As the owner, you are the one who hires the insurance
Take into account the grace period
In short, our recommendation is that you carefully value your potential tenants and hire a rental insurance that suits your situation . Actually, insurance of this type has great advantages and most of them offer good value for money.
And is that in addition to protect against unpaid rent or damage to housing, can replace the famous bank guarantees, facilitating the lease process.
Therefore, if you want to hire a rental insurance, do not hesitate to contact us. An agent specialized in this type of insurance will contact you to study your personal situation and your needs, offering you an insurance with the best conditions.