Home insurance provides various solutions when it comes to protecting a house for rent, but also as a property. For a long time, insurers have been launching these policies on the market that are easily adapted to both renters and owners.
A home that is for rent can have home rental insurance that, although not mandatory, is recommended. Why? Because it will allow us to have a series of precautions to cover the damages of the house that has been rented.
Home insurance is the best option for both parties. In this way, in an unforeseen situation, it is possible to protect yourself from extra expense. Hence the importance of knowing what options are available for this type of policy.
types of home insurance
Within the world of insurance policies for housing rental cases, the most popular are rental non-payment insurance. This type of contract allows shielding the payment of the corresponding monthly payment.
It is a guarantee to prevent landlords from receiving rent from tenants if they breach the contract.
You will be interested to know that, according to the Spanish Rental Insurance Observatory, one in four rental contracts is signed with non-payment insurance to prevent possible problems in the future.
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For the owners of a rented home, any damage that occurs within it, generates an additional cost of their initial investment. But it is important to note that, although the owner would be responsible for signing a housing policy, depending on the damage, the tenants must be responsible for the damage caused according to what has been agreed in the lease.
If there is a policy, the insurer will bear the costs in full or reduce the costs of the repair for the landlord or tenant (depending on the nature of the breakdown).
So well, if you are the owner of a rented home or you are a tenant, you will be interested in knowing some of the characteristics of the different home insurance policies:
1. Multi-risk home insurance: Homeowner
You must insure the value of the fixed elements of the home (walls, electrical installation, kitchen furniture, bathrooms, doors, etc.) according to their reconstruction value, not their market value. In this way you will have coverage in case of: fire, water damage, breakage and other damage, and above all, civil liability that may be required of you as the owner of the home (for example, in a fire caused by the electrical installation of the home you will be responsible for the damages that occur to neighbors, community and property owned by the tenant).
2. Home multi-risk insurance: Home tenant
You must insure your property, appliances, trousseau, furniture, etc.
With this rental home insurance you will have coverage for any loss that is not caused by the fixed elements of the home (example: a surge in voltage or abnormal current causes damage to appliances, robbery on the street or theft inside the the house) and you will also have your civil liability as a tenant included (for example, you forget to turn off a tap and the neighbor's house floods)
3. Income protection insurance
This type of rental home insurance has become the most viable and perhaps most necessary option for landlords, since it not only protects in the event of non-payment by tenants, but also offers extensive legal defense coverage. We can find in this policy coverage designed to give owners greater peace of mind in the face of the possible risks that may arise in any situation of non-payment.
In addition, rent protection insurance guarantees compensation for acts of vandalism caused by tenants.
In this policy, the person in charge of contracting this insurance will be the landlord, while the tenant must meet a series of requirements that vary depending on the existing lease.
Finally, remember that if you are thinking of renting your property, do not hesitate to contact us! At PRIMER GROUP Centroval
real estate we take care of all this and more, and we will advise you throughout the process.