Although, in recent years, the purchase of housing has risen from its ashes, renting continues to be a great firm bet for hundreds of thousands of Spaniards. A practice that does not have the tradition of other countries but that for several decades has been consolidated in Spain as a solid alternative to the mortgage.
In this post, we will unite both worlds, that of buying and that of renting, in one. We refer to people who own a home and decide to put it up for rent. In other words, landlords.
Anyone who has been in this situation knows that it is not just signing a contract and waiting comfortably to wait for the tenant to periodically pay their monthly payment. Having a house and leaving it to another family, generally unknown, its use for months or years generates many concerns. You never know if the tenants are going to be faithful and punctual in their payment, if they are going to treat our property well or not, or if they are going to have problems with the neighbors. In a certain way, it is a coin tossed, a melon to be opened: everything can go great as well as end up leading to a nightmare.
However, the insurance sector is prepared for situations like this and offers solutions. And home casualty insurance, without going any further, takes into account not only the care of the home when you live in it but also when it is rented and leased to other people. A complete product of this branch, a multi-risk, is capable of including among its additional coverages a series of guarantees intended exclusively for the protection of the lessor.
From this group of guarantees included in some multi-risk home insurance, we will begin with a classic of insurance products, the lessor’s civil liability, which is one of the fundamental guarantees within this group of coverage. The owner of the house must be responsible (if applicable, of course) for the payment of compensation for bodily and/or material damage that has been involuntarily caused to the tenant, as the owner of the continent, and content that have been insured.
Although the majority of tenants or tenants are legal and formal, it is true that there are also numerous exceptions. For this reason, delinquency is one of the greatest risks that the owner assumes when renting his home. In this type of situation, the non-payment of rent coverage responds, which provides financial compensation to its client up to the amount and period that have been insured for the non-payment of rent until the tenant is evicted.
This guarantee is responsible for the reimbursement of unpaid rent by the defaulter up to the amount of monthly rent and the number of monthly payments that have been established in the particular conditions of the contract, generally respecting a grace period. If the non-payment situation goes on for too long and a process of eviction of the tenant or rent claim has been initiated, the insurance company could even advance the money corresponding to the unpaid rent to its client.
Another important guarantee is the loss of rentals due to temporary habitability. Let’s imagine that a flood has caused serious damage to the house we have rented, making normal life impossible in it. The policy takes care of the money lost as a result of this situation during the time necessary to repair the damage contemplated in the insurance and until the property has minimum habitability conditions again.
In this type of case in which we lease our property to an unknown person, the legal defense coverage of the landlord also seems essential, who makes numerous services available to the landlord. Namely: telephone legal advice, claim for non-compliance with service contracts for the repair or maintenance of the insured property, defense of the lessor’s criminal liability in the event that the lessor had committed a crime or misdemeanor.
The legal defense also serves to take responsibility in claims against the tenant for non-payment or delay in rent payment, damage caused to the home or its personal property, works carried out on the apartment without the owner’s authorization addition, this guarantee can claim the rights related to the rented home, protecting the interests of its client in numerous cases:
- Claims against neighbors for non-compliance with legal regulations.
- Claims for damages caused by third parties to housing and personal property.
- Even demands from the tenant for not having complied with the contract when it comes to maintaining or repairing the housing facilities.
Finally, and given the possibility that our tenant really has evil intentions -which there are-, there is also a solution: the coverage for malicious damage by the tenant, which guarantees up to a set limit of direct material damage caused on the mainland and the contents of the insured home as a result of this type of action.