When you rent out your home, this will obviously bring you certain benefits, because you will receive extra income and make good use of a property that would otherwise be vacant. More and more property owners in Barcelona, however, are taking out landlord insurance to protect their rights.
Renting out a property is not always an easy step to take, and there is also the possibility of meeting the wrong tenant causing problems in a later stadium. So today’s article by ShBarcelona will tell you more about interesting insurance you can take out.
Related article: Why Have Home Insurance?
Discover the advantages of taking out a landlord insurance
Why should you even consider taking out landlord insurance in Barcelona? Well, basically it aims at protecting the interests of the property owner by, for example, guaranteeing income when tenants decide not to pay their monthly rent anymore.
One should not take renting out a property lightly, because you are signing a rental contract (with clauses) with someone that you hardly know. The insurance is, therefore, a certain guarantee that conditions will be met, even if the tenant doesn’t comply somewhere along the way.
If this happens, the insurance company will take all necessary steps during the entire process, and as a result, a property owner doesn’t have to worry one bit. He can leave it all to the professionals at the insurance company to take care of it for him.
Non-payment of rent is a problem that many landlords are facing, unfortunately, and as rent has risen in the last couple of years, more and more tenants are struggling to pay their rent. This is the main reason for the huge increase in landlord insurances having been taken out in Barcelona.
Related article: Attending a Homeowners’ Association Meeting in Barcelona
Payments that are late are more common now, but fortunately your landlord insurance will cover these dreaded non-payments.
It could take months for landlords to receive a single, monthly rental payment, so this is a serious problem and it must be solved adequately. But what does landlord insurance actually cover in Barcelona?
- Non-payment of rent. The insurance covers non-payments, and the owner will receive an amount corresponding with the monthly rent. This coverage lasts for a maximum of 12 months and while the claim process lasts.
- Legal protection. If the tenant does not comply with his obligation to pay rent, the landlord insurance will claim it officially, but if the tenant does not respond to this claim, the insurance company will then take legal action to evict the tenant from his rental home, without the landlord having to pay any additional costs. This process, however, can take quite a long time, depending on the court that is handling your case.
- Vandalism. The insurance will pay for damages caused by tenants, although the insurance doesn’t cover stolen items.
- Legal assistance. There is a specialist team of lawyers at the insurance company, and they will be available to landlords to answer any legal questions. This service is used often nowadays, because landlords are not always aware of who should pay for what when it concerns their property. If you have taken out landlord insurance, you will always have access to legal assistance.
- Criminal liability protection. Lawyers will look after the interests of those they are representing, and they will go to court whenever necessary and at no extra cost to the landlord.
What advantage is most important to you when taking out landlord insurance?