Many people in Madrid prefer renting a home, as property prices are high, especially in certain parts of the capital. Banks have also decreased mortgages for financing.
But as time goes by, needs change, and the real estate sector has no other choice than to adapt to these changes. As there is a lot of potential in renting out properties in the capital, many landlords wish to take out landlord insurance. This way they can have greater peace of mind, should any problems be caused by a tenant.
And that is why today’s article by ShMadrid will tell you more about this special insurance.
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Discover the advantages of taking out landlord insurance
If you have been contemplating to take out a landlord insurance policy for your second home in Madrid, then make sure you know about all the advantages and guarantees before you make a decision.
- First of all, the insurance will cover non-payment by tenants, so if monthly rent is not being paid, the insurance company will compensate non-payments, and the amount of this compensation will be equal to the unpaid monthly rent. This means the insurance company will take care of your problem, according to the specific conditions mentioned in your insurance policy.
- If a tenant has damaged the property, the insurance company will take care of the situation and compensate the property owner. The insurance company will therefore be responsible for the whole process, but don’t forget that each contract has a maximum amount that is covered. This limit is in your contract.
- An insurance company will provide legal advice. You can turn to them for any information you need or any legal questions on properties you have, like for example payment obligations for property owner and tenant.
- Legal defence for the landlord, when the tenant leaves him no choice to report him after not paying his debt. This situation only occurs after mediation.
A landlord insurance is normally valid for one full year, starting on the date on which the policy goes into effect. This date will be indicated clearly in one of the special insurance conditions. The policy will be automatically renewed each year, unless the contract is terminated at least one month before the earlier mentioned date.
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Communicating with the insurance company is really simple. All you need to do is contact them and inform them of the specific reason for your claim. Companies usually have several different ways to contact them: either by phone (24/7), email or online, through a customer support portal.
As a property owner, however, you must always be aware that there is a maximum period of 30 days to notify the insurance company after rent has not been paid, and this period starts on the day rent normally should have been paid.
If you (as a landlord) have another insurance policy that covers the exact same risk, you should contact all insurance companies to report the incident.
To conclude this article, it is clear that the number of landlord insurance policies taken out in Madrid has increased considerably lately, and this is mainly due to the fact that insurance companies offer guarantees in the event of non-payment, damages and other incidents.
Unfortunately any landlord can get unlucky and sign a rental contract with a badly behaving tenant, so before signing that contract, you had better investigate the rules and conditions of a landlord insurance to see if it might be of particular interest to you!
Do you know of another situation when a landlord insurance comes in handy?