Insurance for rental properties
Insurance for rental properties
We are in a situation where most often offered for rental houses is unfortunately accompanied by a diminishing tenant solvency. As one article in a national Italian newspaper, the certainty of the owners to be paid is fundamental because the procedures for arrears dissuade any confrontation with the tenants.
Recently, they were born insurance products that protect from the danger of any unpaid monthly fees.
To name a few of the most popular products, there are:
- VALORE AFFITTO (Auxilia Finance, promoted by the Italian Federation of Professional Estate Agents, of which we are part)
- LOCAZIONE AMICA (Credit Società Finanziaria Spa)
- AFFITTO ASSICURATO
- AFFITTO SICURO (SoloAffitti Spa)
- SERVIZIO GARANZIA AFFITTO (Confedilizia, which it provides, differently from the other, a surety agreement)
We can say that, in general, these are formulas that provide for a variable premium between 1.4% and 2.5% of annual rent. If we take as a reference a fee of 500 per month, the fee to be paid between 84 and 150 euro per year.
Benefits for the landlord
Let us see very briefly what are the main advantages for the homeowner (landlord):
- It is guaranteed for repayment of fees not paid by the tenant defaulting.
- Before to conclude the policy the insurance company makes a thorough analysis on the reliability of the tenant. This response is also useful for the landlord.
- He has the certainty of repayment of any damage to the house and its contents.
- He has the possibility to pursue a legal claim for any disputes with the tenant, with costs borne by the company.
Benefits for the tenant
And now, again briefly, the main advantages for the tenant:
- He has the possibility of obtaining a guarantee, without the necessity to immobilize money on bank account.
- He can save the payment the security deposit, while offering the owner a full warranty.
- He simplifies the bureaucratic procedures for the lease and accelerates reaching an agreement with the owner.
General consideration
Obviously here are summarized only briefly some advantages and it is good to read carefully the documents related to each of the policies be taken out that present different nuances that can make lean more towards an insurance product or for another.
For what concerns the revenue criteria that are applied, generally to get the insurance the cost of the rent should not exceed 30-40% of salary.
Please forgive me if my English level does not respect the importance of the topic discussed, for any information please write me info@ortalloggi.com
Alice – www.ortalloggi.com
FONTI: soloaffitti.it/affittosicuro/home; locazioneamica.it/; confedilizia.it/servizi-confedilizia/garanzia-affitto/;
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