A rental property requires appropriate coverage. Your tenant's home insurance alone does not cover all risks. To preserve your property and cover your liability as a lessor, you must insure it yourself. What are the mandatory guarantees? How to cover the risk of unpaid rent? We answer your questions.
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| Landlord: Which Insurance Contract to Choose? |
SUMMARY
- Why take out landlord insurance?
- Landlord insurance: is it compulsory?
- What does the Unpaid Rent Guarantee (GLI) cover?
Why take out landlord insurance?
The insurance dedicated to the non-occupant landlord offers many guarantees. It covers any accidental event that may affect your home, namely the risk of fire, burglary, or climatic events.
This insurance includes the owner's civil liability. This is a guarantee that comes into play in the event of a claim for which you are liable. For example, if a fire breaks out in the accommodation, due to an outdated electrical installation, your tenant may suffer damage and turn against you.
Another benefit of landlord and landlord insurance is that it protects your property (even movable property if it's furnished), whether it's rented or vacant. For example, if your roof is damaged following a storm, the repair costs are covered.
To guarantee your peace of mind, landlord and landlord insurance can also include other guarantees, including repair services or loss of rent following a covered claim (the time of repairing the accommodation).
- Good to know:
By taking out landlord and landlord insurance, you can benefit from tax advantages. Indeed, housing insurance contributions can be deducted from property income in the same way as loan interest.
Landlord insurance: is it compulsory?
If your home is part of a condominium, you must at least insure it against civil liability.
If it is an individual accommodation (excluding condominiums), insurance is not compulsory (unlike the tenant, who must ensure the accommodation for the damage for which he would be responsible) but is strongly recommended, such as property damage coverage. Without this insurance, you will have to assume alone the repair of the damage caused to your tenant (or to the neighborhood) and to your own property (in the event of a storm for example).
What does the Unpaid Rent Guarantee (GLI) cover?
Unpaid Rent Insurance covers loss of income when the tenant in place no longer pays his rent. Thus, in the event of non-payment, the insurance takes over. It can also intervene if the tenant dies.
Note:
This type of contract is subject to conditions at the time of subscription, such as the solvency of the tenant.
If you have taken out a loan for the acquisition of the rental accommodation, it is in your best interest to insure it and to take out an unpaid rent guarantee in addition. It will allow you to honor your monthly loan payments, without penalizing household income.
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