If you do have no surety insurance, or on the contrary, you are part of a large number of tenants in the country, you are likely aware that many times renting represents a challenge when the necessary guarantees are not available to be able to do it.
The aforementioned is a double impediment, since it blocks property owners from closing deals, and those who want to rent (potential tenants), deprive them of the possibility of solving their housing needs.
Faced with these obstacles, surety insurance applied to rents was born.
In a few and simple words, it is a contract whose purpose is for the insurer to guarantee the creditor of an obligation that his debtor will fulfill it promptly, as provided in the agreement that has been entered into between them. in exchange for a premium that the insurer will charge the debtor for it.
Perhaps conceptualized in such a narrow way it sounds a bit confusing, right? Do not worry! Here we give you all the details so that you understand it in its entirety.
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The purpose of surety insurance for rentals
It is insurance that seeks to guarantee compliance with the contracts carried out for the rental of real estate. Essentially, it is a tool to guarantee the payment of the rent and/or the security deposit.
Failure to pay rent:
If the case arises, the insurer will compensate the insured (owner of the property) by paying the rents that are owed until the moment the property is vacated. It should be clarified that the creditor will have to request his debtor to comply with the obligation by all means, and only if the latter is declared insolvent, can the insured person claim the policy.
Replacement of the guarantee deposit:
In this case, the owner (insured) is guaranteed the repair of the rented real estate, in case the condition of the house is altered, reducing its value. It should be noted that it is also a very good tool to facilitate the possibility of renting to those people who do not have proprietary or other guarantees.
One point that we do not want to stop emphasizing is that the surety contract is regulated by the Superintendency of Insurance so that only insurance companies are the ones who can grant this kind of policy.
How do you get surety insurance?
The requirements for contracting this type of insurance contract are really simple:
- Presentation of the ID of both parties.
- The tenant must prove family income.
- The rental amount may not exceed 33% of the income obtained by the family group.
- A copy of the rental agreement must also be submitted.
How is the premium for this insurance paid?
The tenant will pay the insurer a quarterly fee. Which will represent the amount to be guaranteed on the total rental contract. It is a percentage of it, and the cost of insurance will be added to that.
The bill is the percentage of the total amount of the rent for the months of rent. That appears in the contract. Plus the cost of the insurance, all divided into three, with which there will be quarterly installments.
Ultimately, the surety contract protects the property owner. If an expense arises that the tenant should pay and does not face. But in addition, it is a great tool for people who want to rent. And who do not have proprietary guarantees or any kind, so that they can finally access a decent rental?