HOW TO CHOOSE A GOOD RENT DEFAULT INSURANCE POLICY

One of the main concerns landlords have when renting out their property is being unable to collect rent, especially at a time of constant uncertainty caused by the pandemic.

Rent default insurance policies don’t only cover non-payment of rent but also damages to the property caused by tenants, theft or self defence.

The following provides some recommendations to consider before taking out such policies:

  • Select a reputable insurance company recognised by the Dirección General de Seguros. (ask the insurer for this certificate).
  • Cover has to be for a minimum of one year in consideration of the duration of a possible eviction process.
  • Ensure that the policy specifies whether you are renting on a long-term, seasonal or tourist basis, as policy conditions change.
  • Carry out solvency checks on the tenants (payslip, income statements, guarantors).
  • This insurance can only be taken out and paid for by owners, not tenants.
  • Carefully review the cover the policy offers. It is best to consult an expert (insurance agent or broker) or your lawyer.
  • Specify the characteristics of the property and take photographs and inventories (attach to the contract).

Author: J. Escobedo

I am a member of the Tenerife Law Society since 1989 with a dedicated team for anyone who needs an immediate answer or long term solution to any practical or legal issues appertaining to any property or business investment in Spain. If you have decided to move to Spain to start a new life, whether that´s buying a property or a business, then you will definitely need the services of a good Spanish Lawyer who is fully conversant with Spanish protocol and who has a good command of the English language. I am based in the south of Tenerife and I am specialist in Property Law, Inheritance issues and taxes as well as Tenerife and Canarian law and a great deal more. ABOUT MY STAFF All my friendly and professional staff are fluent in English. We have been working for foreign clientes for over 30 years in Tenerife, providing legal advice and litigation services to all our clients investing throughout the whole of Spain and we pride ourselves on providing a high quality service to our clients in the form of clearer communication and advice.

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