The Best Rental Insurance for Homes: Have you ever wondered if it would be convenient for you to have a Rental Insurance for Homes you have leased? Do you think your tenant can stop paying your rent or do you want to protect yourself against home accidents that can happen at any time? Well to deal with those and many other problems are rental insurance.
Within this category of policies, the most popular is currently the unpaid rent insurance. According to the Rental Insurance Observatory, today, one out of every four rental contracts are signed with a non-payment insurance.
The purpose of this guide is to clarify what rental insurance really is for and what the best insurers currently offer. That way, when you reach the end, you’ll have a much clearer idea of whether you should hire a policy of this type.
In addition, we have made a comparative study of your own with which you can check which insurer would best adapt to your needs, so you can not miss anything.
What is The Best Rental Insurance for Homes?
Let’s start at the beginning. A rental insurance is, basically, a policy that is contracted to cover certain risks of a lease between the owner of an apartment and the tenant. Normally, the coverage of a rental insurance has to do with the non-payment of the rent by the tenant, with the material damages that may occur or with the thefts, although there are more coverages.
That is to say, it is an insurance that covers the owner of the apartment of the problems that the tenant may create or of the damages that the apartment may suffer. Therefore, do not confuse rental insurance with renters insurance. The latter are the policies that the tenant can hire to cover their responsibility for possible damage to the home, to neighbors, against theft, etc.
An indicative data: the cost of rental insurance is usually between 3% and 5% of the monthly rental income. That is, for a € 650 rental, the insurance cost would be between € 234 and € 390 per year.
The coverages that have the insurances of rent we will see them more down, but first, we responded to a question that many people consider when renting: To have an insurance of rent is obligatory?
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Is it Compulsory to Hire Rental Insurance for Homes?
The answer is no. The truth is that neither the Urban Leasing Law, nor the Civil Code, nor the Horizontal Property Law that governs the communities of neighbors, require that a rental insurance is subscribed.
Although in fact, it is advisable since there is a huge number of risks (damage to housing, unpaid, civil liability, structural damage, damage to the interior of the apartment, etc.), which may be covered by rental insurance.
In addition, the rental insurance has another advantage: it can be deducted when making the income statement. Depending on the Autonomous Community, the percentage to be deducted can be up to 100%.
Let’s see in more detail what are the coverages that renters insurance can have.
What coverages do the rental insurance have?
As we have mentioned, the coverage of rental insurance is focused on offering peace of mind to the landlord or landlord, alleviating the most frequent problems that may occur with tenants.
The main problems when renting an apartment is that the tenant stops paying the monthly installments or damages occur in the continent or in the contents of the apartment, whether accidental or intentional. Thus, most rental insurance offers these coverages, with more or less broad economic limits.
But in addition to the coverage of non-payment of income and that of material damage, there are others such as the following:
- Coverage of expenses derived from judicial processes: with it, the insurer is responsible for part or all of the expenses of a judicial or administrative process derived from a problem with the tenant. These expenses can be the fees of lawyers and attorneys, the costs of a trial, the costs and fees of the experts or indemnities, among others.
- Telephone legal assistance: most insurers offer this legal advice service to advise the owner of the apartment about the measures to be taken in case of problems with the tenant.
- Claims for breach of contract: it is a cover that guarantees the rights of the owner in case the tenant fails to comply with the lease contract. For example, if the tenant sub-rents a room even though he can not do it by contract, with this coverage the insured can claim with legal advice included.
- Viability studies of the tenant: insurers cover their backs requiring the tenant to submit documentation proving their economic solvency. This aspect is one of the most valued by the owners since it offers guarantees for long-term rental maintenance.
- Defense of the rights related to housing: a cover that offers you legal defense for your rights as owner within a community of neighbors.
- Vandalism coverage: it is more common than it seems. There is a conflict between landlord and tenant and the latter ends up leaving the house by force. As revenge, it causes damage to the walls or furniture. This coverage covers precisely that risk, damages caused in bad faith by the tenant.
- Professional assistance services: like other home insurance, rental insurance usually has the services of emergency professionals such as electricians, plumbers, locksmiths, etc. These services are usually on call 24 hours a day.
Remember: before signing a contract with the insurer, read the fine print well. Sometimes, the conditions have important exclusions with which you must count in case of loss.
However, not all rental insurance responds to the same circumstances. In fact, insurers put a series of conditions when it comes to ensuring a home that is going to be rented. Even for homes that already have a tenant, insurance companies must certify that a series of requirements are met. Otherwise, they may choose not to offer their coverage. Let’s see what those conditions are and understand why in the next section.
What requirements does rental insurance require?
The work of insurers is to assess what are the risks of a loss occurring, understood as such from a damage to the floor to a default or breach of contract. For this reason, the insurance companies review, on a case by case basis, the rental regimes of each person who wishes to purchase insurance of this type.
As we will see in the comparison, each insurer establishes its own conditions, but in general, they take into account the following aspects to ensure or not a home:
- They do not usually insure shared housing: as a general rule, the rents that are insured are those that correspond to individual tenants, family units or de facto couples, which excludes shared housing type of student flat or floors for workers.
- They should be homes intended for residential use: the most common is to exclude housing for offices or small businesses such as consultations, offices, etc.
- The monthly rent: logically, the higher the rent the owner requests, the higher the price of the policy. In many cases, the premium paid is reduced by admitting a franchise, which may be one month’s rent or more.
- The level of income of the tenant: insurers look closely at the economic capacity of the tenant of the apartment, demanding even indefinite contracts, income statements or other data that demonstrate that it will not easily fall into unpaid rent.
- The size and location of the floor: insurers often require that the floor has a minimum size and that it is in good condition. That it is not classified as dilapidated, that it is not a prefabricated house or that it is not more than 50 or 60 years old are some of the requirements that are most often required.
Now that we know the ins and outs of Rental Insurance for Homes, it is time to analyze the insurance offered by each of the leading companies in Spain. We review them in our comparison below.
Comparison of Rental Insurance for Homes
Mapfre’s Rental Insurance for Homes
The rental insurance offered by Mapfre offers, as its most important coverage, the protection against the non-payment of the rent by the tenant. This coverage can reach 6, 9 or 12 months of defaults.
It also offers damage coverage for vandalism caused by the tenant. This insurance also covers the expenses of the legal defense of the landlord in case of problems arising from the contract (eviction, claim of damages, etc.) up to a maximum of 3000 euros, including also a telephone legal guidance service.
Finally, it is necessary to emphasize that it has a service of assistance in the home that covers the urgent repairs and the services of contact with professionals.
MAPFRE insurance, like the most insurance of these characteristics, has a franchise corresponding to one month’s rent.
Caser rental insurance
Caser rental housing insurance prioritizes the collection of rents and repair services. On the one hand, it offers a guarantee on income that requires, as a minimum, a one-month rental income.
On the other hand, it offers other basic coverages of assistance 24 hours in case of urgency of professionals (plumbers, electricians, locksmiths, and glaziers). This guarantee covers the professional’s travel and the first three hours of work.
Also, as a basic cover, it offers the guarantee of procedural expenses (up to a maximum of € 3000) in judicial and administrative proceedings for the purpose of claiming damages, claiming unpaid rents, claims to other insurers, etc. It also has a telephone legal advice service.
As an optional cover, Caser offers damage coverage in the rented home that only responds for damages caused intentionally and in bad faith by the delinquent tenant. That yes, as the most outstanding coverage (since it is one of the few insurers that offer it) Caser can cover the damages to the contents of the house that appears in the lease, that is, the furniture. This coverage is very useful because one of the main concerns of the owners of flats is that there is damage to furniture and appliances on the floor.
But despite all these coverages, Caser details on its website the exceptions that this rental insurance has, which are not few.
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The most important ones are that this insurance does not cover shared or sublet housing (that is, it only covers in the case that a tenant is a person or a family unit, not if there are several people without relationship between them, such as a student apartment); neither does it cover season rentals or rentals of less than 12 months. As for the economic conditions of the tenant, he must demonstrate sufficient solvency (if he does not have an indefinite contract, he must show that he has been working in the same company for more than a year). Finally, it is noteworthy that this insurance does not cover rentals in which the tenant is a student.
The rental insurance of Arag
The insurance of rent of houses of Arag is one of the most complete of the market. The rental insurance clauses of Arag mainly include hedges against:
- Non-payment of rents (with amounts of up to 18 months).
- Defense against breach of contract by the tenant
- Legal defense.
- Claim for damages caused to the property and also to the contents of the property.
- Legal defense before the Administration and in front of the community of neighbors.
- Defense against breaches of contracts with repair and maintenance services.
- Locksmith fees in case of eviction of the tenant or loss of rent due to fire.
In addition, ARAG offers an estimate of the price of its policies. In this case, a rental insurance on a home with a 12-month non-payment coverage and a monthly rent of € 600 would cost about € 325 per year.
The insurance of rent of Mutual of Owners
This well-known property insurer was the one that introduced the unpaid rent insurance in Spain as we know it. It is also one of the best valued by customers in this type of insurance.
The rental insurance of Mutua de Propietarios offers the following coverages:
- Non-payment insurance: the company is liable for the unpaid installments of the tenant (6 or 12 months) and also for unpaid supplies. In addition, it offers the possibility of advancing the collection of unpaid rents by the insurer.
- Losses of rents due to fire: the company can cover the loss of rents if the house becomes uninhabitable due to fire, explosion or lightning.
Vandalism and theft: cover malicious damage to the continent caused by the tenant always
- that there is an indemnified claim against the guarantee of non-payment of rents. As an additional guarantee, there is coverage that also covers vandalism to the contents of the home.
- Legal advice: defense and claim it conflicts directly related to the rental contract as well as telephone advice service.
- Replacing the lock: in case of theft, attempted theft or eviction of the tenant, the insurer covers the cost of replacing the lock.
The rental insurance of Saint Lucia
The insurance company Santa Lucia launched in 2016 the insurance ” Total protection rent “, prioritizing the coverage of non-payment of income and the legal protection of the landlord in the face of conflicts with the tenant.
The insurance of rent of Santa Lucia includes, therefore, coverages against the non-payment of 6, 9 or 12 monthly payments; coverage of expenses for legal, administrative, arbitration or mediation proceedings (up to a maximum of € 5,000) as well as legal telephone assistance, criminal defense and claims for damages; and covers for vandalism and subtraction of the housing continent (up to € 3000).
On the other hand, as optional coverage can be contracted the following guarantees:
- Landlord’s Civil Liability.
- Tenant’s Civil Liability.
- Basic service for the maintenance of housing (plumbing, masonry, locksmith, and electricity).
- Connection with professionals.
- Replacing locks and cleaning by eviction.
This insurance has a grace period of two months and a deductible common to any loss of an amount equivalent to one month’s rent.
The rental insurance of Ocaso
Ocaso rental insurance is more focused on the protection of tangible property, prioritizing the guarantees of multi-risk home insurance, although other specific insurance coverage can also be hired.
Ocaso insurance offers basic coverage against material damages (including acts of vandalism, water damage, fire, smoke, electrical damage, weather phenomena, robberies and thefts inside the home and the storage room, among others); Civil Liability; Legal and Legal Assistance of the landlord; replacement of locks; 24-hour assistance and forced eviction, among other coverages.
As optional coverages, Ocaso offers the non-payment of rents and the Repeal of the proportional rule for underinsurance.
The grace period for this insurance is three months.
DAS rental insurance
The DAS rental insurance prioritizes the legal protection of the landlord as well as the non-payment of the tenant.
As main coverages it establishes:
- Legal advice: Legal advice at a distance and Assistance in the management of legal documents.
- Defense of the insured: Criminal defense of the lessor and Subsidiary defense of the Civil Liability.
- Conflict resolution: Eviction action to recover the possession and claim of income: Defense and claim of rights derived from the lease contract other than those of eviction and claim of rents and Conflicts related to ownership of the insured property
- Claims for damages and rights: Consumer rights; Claim for breach of other insurance; Claims for non-contractual damages caused by third parties (optional); Claims for non-contractual damages caused by third parties (optional) and Compensation for damages to the continent due to vandalism in case of eviction.
- The connection of services: Connection of professionals in claims without coverage
- Non-payment of rent: with covers of 6, 9 or 12 months.
DAS offers an estimate of the price of your rental insurance: for a monthly rent of € 500 and a non-payment coverage of 12 months, the estimated price of the premium is € 270 per year.
And a curiosity about this company: DAS is the first insurance group in Spain that has begun to use the reputation factor in collaborative economy websites such as Airbnb or BlaBlaCar to assess the suitability of a candidate to be a tenant.
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Through the Madrid company Traity, DAS will be able to find tenants with a good reputation even though their economic conditions would have ruled them out. That is, the analysis of online reputation, which is already applied in the labor market, also reaches the insurance sector.
The rental insurance of Reale
Reale is another of the major companies in our country that offers rental insurance, in this case under the name of “Insurance for rental housing”, which in addition to the main coverage of a multi-risk household (damage by fire, lightning, water damage, weather phenomena, breakage, flood, theft, etc.) includes:
- Vandalism acts: hose caused intentionally by the tenant.
- Civil responsibility: of the client and his family.
- Non-payment of income: up to a maximum term of 12 months.
- Legal protection: To request legal defense and resolve conflicts of the private life of the client or, simply, to solve doubts for administrative infractions or for breach of contracts.
- Servihogar Service: Assistance 24 hours a day, 365 days a year.
- Theft, damage due to theft, theft, and robbery: In case of damage to the lock of the dwelling, including that of the storage room, or forcing entry and theft of part of the furniture or fraudulently using the credit cards, we repair and indemnify.
In addition to these main basic coverages, you can contract other optional ones:
- Rental housing: It covers the expenses of transfer and stays in furniture storage of the insured furniture and the loss of rent due to temporary housing instability.
- Legal defense of the landlord: Legal defense or claim in lease contracts as well as protection against non-payment of rent in case of eviction against a delinquent tenant.
- Robbery to the continent: It is covered, for example, the theft of solar panels with capital that can go from € 1,500 to € 10,000.
- Support for computer equipment: Help by remote control or by telephone in the resolution of incidents that the user has with the computer: problems of Internet access, email, viruses, computer configuration or other incidents of a general nature.
- Aesthetic damage: Repair of damaged elements, and maintenance of the aesthetic harmony of the home.
- Replanting trees and garden: Compensation for damage to the garden and removal of damaged trees.
- Total ruin of the insured home: Damages due to construction or renovation carried out by third parties on land or subsoil other than the building where the insured home is located.
Now that you know the main rental insurance offered by companies in Spain and their characteristics, it is time to talk about which are the best.
Remember! It is essential to read the fine print of each policy and ask your insurance agent if there is any doubt. Only then will you avoid unwanted surprises.
The Best Rental Insurance for Homes
From Sector Asegurador we have carried out a study in which we have analyzed the conditions of each insurance, as well as the opinions that each product deserves in specialized forums and in organizations such as the Organization of Consumers and Users.
The results we have reached show that the best Rental Insurance for Homes:
- Caser Rental Insurance: being one of the most complete in the market, especially with a wide range of coverage related to property damage to housing, and above all, for furniture protection coverage. In addition, Caser offers quite clearly the conditions of their contracts, without too much fine print.
- Rental insurance ARAG: this company is a specialist in real estate protection and that gives you a plus of confidence. The coverage of your rental insurance is quite complete and your salespeople know the product well. In addition, the product has a good value for money.
- Rental insurance of MAPFRE: the solvency and resolving capacity of this company are the strongest point of this insurance. It does not offer star coverage that makes it stand out above its competitors, but it offers a guarantee of rapid response to any incident. Of course, the price of MAPFRE rental insurance is higher than the rest.
We hope that this guide on rental insurance has helped you resolve your doubts and make a decision on which policy best suits your needs. If you have any questions or suggestions, do not hesitate to leave a comment and we will respond as soon as possible!
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Oh! And if what you are looking for is the best rental apartment to live as soon as possible, do not miss our Guide to rent an apartment, where we offer you some tricks and the best tips to find your ideal rental home.
And if you want to know more about real estate insurance, we invite you to take a walk through our Guide for insurance for communities. We are convinced that it will help you discover some not-too-familiar aspects of neighborhood communities and the rights and duties of their owners.