Non-payment of rent insurance is a fundamental tool to protect homeowners in the Canary Islands against the uncertainty of possible non-payments by tenants. This type of insurance not only provides peace of mind to owners, but also guarantees financial stability, avoiding situations of economic stress.

How does rent non-payment insurance work?

When a tenant stops paying any of the monthly payments, the insurance company takes the initiative to resolve the situation. Below, we explain the process:

1. Start of legal procedures: As soon as non-payment is detected, the insurer is responsible for initiating the necessary legal procedures to claim the rent owed and proceed to evict the delinquent tenant. This step is crucial, as many landlords do not have the resources or legal knowledge to handle these cases themselves.
2. Advance monthly payments: Although the judicial process may be prolonged, the insurer undertakes to advance the unpaid monthly payments while the eviction is in progress. This means that the owner will not see his finances affected, receiving the rental amount on time.
3. Income claim: The insurer will manage all the necessary claims to recover unpaid rents. This legal and financial support ensures that owners are not left without income during the duration of the litigation.

Benefits of having rent non-payment insurance

Taking out rental non-payment insurance offers multiple benefits for property owners:

• Financial security: The main advantage is the peace of mind of knowing that you will receive your rent payment, even if the tenant defaults on their obligations.
• Legal advice: Insurers provide legal support, managing the entire claim and eviction process, which simplifies the lives of homeowners.
• Tenant selection: Many insurers carry out a prior solvency study on tenants, ensuring that those who rent your property have a stable and reliable financial profile.
• Integral protection: In addition to non-payment, some insurance also covers possible damage that the tenant may cause to the property, providing additional protection.

Considerations when contracting rent non-payment insurance

Before taking out rental non-payment insurance, it is important to take into account some aspects:

• Coverage: Check what specific coverages the policy offers. Some insurers may include additional services such as damage coverage.
• Conditions: Make sure you fully understand the conditions of the insurance, including the length of time the insurer agrees to cover non-payments and the process for making a claim.
• Cost: Compare the costs of different insurers and what they offer in return to ensure you get the best value for money.

Non-payment of rent insurance is an effective solution to guarantee the peace of mind and financial security of owners in the Canary Islands. It not only facilitates the claim and eviction process, but also ensures the collection of rents, allowing owners to manage their properties with confidence.

Are you interested in learning more about how rent non-payment insurance can benefit you? Do not hesitate to contact us! Our exceptional advisors They are ready to provide you with all the information you need and help you find the perfect solution to protect your investment. Call now and find out how we can help you!