Unpaid rent insurance

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Why take out unpaid rent insurance?

By taking out unpaid rent insurance, you protect both your property and your budget. Indeed, the majority of landlords take out a mortgage in order to make their rental investment. Unpaid rent insurance compensates for unpaid rent by the tenant, and also covers any property damage, enabling the owner to quickly carry out the necessary repair work, and thus get his or her property back on the rental market quickly. Unpaid rent insurance also offers a legal protection option, enabling the landlord to cover all his legal costs in the event of a problem.
It should be noted that it is often recommended to take out unpaid rent insurance when renting a property financed by a mortgage, so that you can repay your monthly instalments with peace of mind.

What types of property are covered by unpaid rent insurance?

Unpaid rent insurance applies to the majority of residential properties put up for rent. It must be a principal residence such as an apartment, house or apartment building.
Note that unpaid rent insurance does not cover commercial premises, buildings under commercial leases or student residences.
In order to benefit from unpaid rent cover, the lease must comply with current regulations and an entry inventory of fixtures must have been carried out. In addition to unpaid rent insurance covering any damage caused by the tenant, the lessor may also require a security deposit, in accordance with current regulations.
For this reason, as soon as a property is rented as a principal residence, it is advisable to take out unpaid rent insurance, regardless of the amount of rent, in order to benefit from full coverage in the event of non-payment.

What benefits are covered by unpaid rent insurance?

Here's the list of benefits covered by unpaid rent insurance:
  • Unpaid rent: Coverage for the amount of your rent, capped at a monthly amount defined in the contract
  • Tenant's damage: Property damage caused by the tenant
  • Fire and natural damage: Coverage of your rental loss
  • Water damage: Coverage of your rental loss
  • Glass breakage: Coverage of damage to the apartment's glazing
As an option, it is also possible to take out legal protection via your unpaid rent insurance, enabling you to benefit from coverage of costs linked to eviction proceedings or advice costs in matters of tenancy law.

How much does unpaid rent insurance cost?

The average rates for unpaid rent insurance are between 300 and 450 francs a year.

Where to buy unpaid rent insurance?

Many companies offering building insurance also offer unpaid rent insurance. Get in touch with your insurer to find out how to take out unpaid rent insurance.

What's the best unpaid rent insurance?

The best unpaid rent insurance is still the one that covers you best, at the best price. In order to obtain a quote for unpaid rent insurance online, please feel free to visit our dedicated form.

What criteria should you consider before taking out unpaid rent insurance?

Before taking out unpaid rent insurance, it's important to consider the coverage criteria of the chosen offer. Here is a list of criteria to consider before taking out:
  • The max. effective rent taken into account: This is the maximum rent insured monthly by the company.
  • The waiting period: This is the period during which the lessor takes responsibility for unpaid rent. Once this period has passed, insurance coverage begins.
  • Compensation ceilings: This is the maximum amount covered by unpaid rent insurance in the event of tenant damage or water damage, for example.
Alexis Milon
Updated on: 01.02.2024Written by Alexis MilonHead of health insurance department at Comparea.
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