Yes, there is a deadline for the property owner to submit a claim and it is very important that you are aware of this if you want to make the most of your rent default insurance. The property owner must submit the claim after two non-payments of the rent and never after the third non-payment. This means that the client must submit the claim between the second non-payment and the third non-payment. If they fail to do so and submit the claim later than that, they will be compensated for the latest of the two unpaid months only and for future unpaid rents.
Here is a practical example:
Let's imagine that the tenant is due to pay the rent to the property owner on or before the 7th each month, and that the lease agreement between them comes into effect on 01/03/2021.
Let’s also suppose that the tenant is late to make the payments every time: they make a payment after 07/03/2021, then another after 07/04/2021, and then again after 07/05/2021. At this point, the property owner decides to submit a claim.
What happens? There have already been three non-payments.
The insurance company will then only cover the last two months, April and May, which means that the missing payment corresponding to March will not be covered because it falls outside the period of coverage. To collect the full amount, the owner should have submitted the claim between 07/04/2021 and 07/05/2021, which is the period between the 2nd and the 3rd non-payments of the rent.