Rent Default Insurance price - How much does Rent Default Insurance cost?
With the price of Lovys Rent Default Insurance, you insure your rental income for a whole year (52 weeks) with a subscription that only (only!) costs you the equivalent to 2 weeks of rental income. It's worth it, isn't it?
1- Who pays for Rent Default Insurance - the property owner or the tenant?
It is advisable that the property owner or lessor pays for the Rent Default Insurance.
2- Does the contracting property owner have to be the same as the property owner named on the lease?
Yes, the property owner who takes out the Rental Default Insurance must also be named on the lease agreement. If this is not the case, the insurance cannot be taken out.
2.1- Does the tenant named on the policy have to be the same as the tenant named on the lease?
Yes, the tenant named on the policy must be the same as the tenant named on the lease agreement. If this is not the case, the insurance cannot be taken out.
3- What is Rent Default Insurance?
Rent Default Insurance is an insurance policy that essentially protects property owners against tenants who fail to pay their monthly rent. By means of this Rent Default Insurance, the payment of the amounts owed is guaranteed in the event that the other party does not pay them. Sounds reassuring, doesn't it?
4- What does the Rent Default Insurance cover?
Rent Default Insurance covers three things: it recovers unpaid bills, offers legal protection to the property owner and takes care of any damage caused to the property by the tenant.
In more detail:
Rent arrears insurance (up to 12 months)
Cost of damage in the event of vandalism to the property (building) by tenants, with a limit of 2,000 euros
Legal assistance in case of eviction proceedings
Locksmith service in case of eviction process
Extra damage protection coverage in case of vandalism of movable property (contents)
5- How long is the insurance valid and how often is it paid?
The Rent Default Insurance is valid for one year and it renews automatically unless you request cancellation beforehand. Payment is monthly, for this policy and all our insurance policies.
6- Rent Default Insurance: requirements
These are the requirements that lessor and lessee (or property owner and tenant) must meet in order to take out Rent Default Insurance:
Hold a lease agreement for a minimum period of 9 months.
The monthly rent should not exceed 3,000 euros.
The property owner must submit all required documents concerning the tenant so that the insurer can run a solvency test. It will be necessary to provide documentation about their monthly income and which category of tenant they belong to (employed, self-employed, unemployed, pensioner, etc.). These documents must be uploaded to Lovys platform in order to be analysed and processed in this solvency test, which is nothing but a verification that the future tenant of the property meets the requirements to be able to afford the rent.
7- Do I need consent from the tenant in order to take out Rent Default Insurance?
Yes, you need consent from the tenant in order to take out and activate a Rent Default Insurance policy.
Once all the tenant-related documentation is uploaded to the platform, the tenant will receive an email in which they will have to express their consent by signing and accepting the General Data Protection Regulation (GDPR).
Once the tenant has given their consent, a solvency test will be carried out to determine whether or not the tenant is suitable for signing the lease agreement.
The process cannot continue without the tenant's consent, so it is advisable that you, as the property owner, ensure that this happens in order to continue with the process.
8- If I take out Rent Default Insurance, is it no longer necessary to ask for a deposit?
If you take out Rent Default Insurance, it is up to you whether or not you want to ask your tenant for a deposit. Insurance and deposits are compatible.