For property owners who rent out their homes, one of the biggest concerns is the risk of tenants failing to pay. This situation not only causes financial loss, but also stress and potential legal disputes. To avoid these issues, more and more landlords are turning to a valuable tool: rental default insurance.

What Is Rental Default Insurance?

Rental default insurance is a policy that protects landlords against the non-payment of rent by tenants. If the tenant fails to pay the rent, the insurance company will cover the missed payments for a set period—typically between 6 and 12 months. Many policies also include coverage for property damage, legal defense, and legal assistance.

How Does This Insurance Work?

The process begins with a financial screening of the prospective tenant. Insurance companies require the tenant to pass a solvency check, assessing their income, job stability, and financial history. This step ensures that only reliable tenant profiles are approved.

Once the tenant is approved and the policy is in place, the landlord is protected against rent default. If the tenant stops paying, the landlord must notify the insurer, who will begin the claims process and, if applicable, make monthly payments up to the insured limit.

What Does Rental Default Insurance Typically Cover?

Beyond covering unpaid rent, most rental default insurance policies include:

• Legal assistance for recovering unpaid rent.

• Coverage of eviction and legal fees.

• Compensation for intentional property damage.

• Claims for unpaid utility bills.

Each policy may vary, so it’s important to carefully review the terms and conditions.

Advantages For Landlords

Having rental default insurance brings peace of mind and financial stability. The key benefits include:

• Guaranteed income, even if the tenant stops paying.

• Reduced time and costs related to legal proceedings.

• Pre-screening of tenants for greater security.

• Professional legal support for managing tenant disputes.

For many landlords, this insurance is now a must-have before signing any lease agreement.

Actum Advocats: Your Real Estate Legal Partner In Girona

At Actum Advocats, a law firm specialized in real estate law in Girona, we help landlords understand, choose, and manage rental default insurance. Our legal team supports you with:

• Selecting the most appropriate policy for your needs.

• Drafting clear and updated lease agreements.

• Managing tenant issues, from missed payments to property recovery.

• Initiating eviction procedures swiftly and effectively.

We also offer experience in negotiations with insurers and legal defense in case of disputes. Our goal is to protect your rights as a landlord and secure your property investment.

Conclusion

Rental default insurance has become an essential tool for landlords seeking security and peace of mind. It offers not just financial protection, but also legal support when needed. In a fast-moving rental market, having expert legal advice is more important than ever.

At Actum Advocats, we invite you to contact us for a consultation. We’ll analyze your case, answer your questions, and guide you through the entire process—so you can rent your property with total confidence.