The economic crisis derived from the COVID-19 pandemic iswreaking havoc on family economies. One of the main problems that it is generating is the inability for some families to facerent payments.As a solution, more and more landlords choose totake out non-payment insurance to avoid late payment.
The contracting of this type of insurance, relatively new, had been experiencingincreases since 2019, when they increased by 35% according to data from theSpanish Observatory of Rental Non-Payment Insurance (OESA), but in times of pandemic hiring has doubled, to the point that the OESA estimates thatin 2021 the 30% of new rental contracts will include non-payment insurance.
“The COVID-19 crisis has made landlords feel more insecure about possible non-payments"explains Emiliano Bermúdez, deputy director general ofdonpiso. “The volatile context in which we live also makes it very difficult to predict future defaults,” he reasons.
Therefore, the expert considers that the best option to avoid late payment situations is to take out these non-payment insurance.“It is the best way to make sure that the money is going to arrive”says Emiliano Bermúdez, who also adds that “it is the trend that society is following.”
How does non-payment insurance work?
“The non-payment of rent insurance covers the rent that is agreed upon at the time of signing for up to 12 months of non-payment”explains Emiliano Bermúdez. In this way, the landlord ensures his monthly rent and avoids situations of late payment on the part of the tenant.
In addition to non-payment, these insurances offer other coverage. "Once insurance has been contracted," explains Emiliano Bermúdez, "it is common to add protection for damage to the home or theft. Which in turn are themain cause of litigationbetween the landlord and the tenant,” he adds.
For the expert, taking out insurance also has benefits for the tenant, by serving as an economic relief inin case of not being able to pay the rent. “With extensive coverage, the tenantavoids possible unpleasant situations. How to get on the list of defaulters or even be evicted”, he thinks.
“Non-payment insurance is a very convenient tool”, thinks the expert. And he predicts that in the future there will be more and more rental policies. “Just like car insurance, for example,over time they are likely to become a necessary condition for renting", adventure.
The postNon-payment insurance: do they prevent rent arrears?first appeared onApartment rentals.
