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How Landlord Insurance Protects Against Unpaid Rent

An insurance or financial guarantee protects the landlord by ensuring that, if payments stop, the organisation continues to transfer money to the owner as part of…

Housing and rent

Answer

Insurance or a financial guarantee protects the landlord by ensuring that the provider continues to make payments to the owner if the tenant stops paying, subject to the coverage terms. The amount of rent is approved based on the tenant’s income.

This does not mean that the tenant’s debt disappears. The guarantee protects the owner but does not cancel the debt; after paying, the provider may seek reimbursement from the tenant under its contract.

Therefore, it is important to read not only the lease agreement but also the terms of the guarantee. You need to understand whether it covers only alquiler or also gastos comunes, damage, and dispute costs. In the event of financial difficulties, contact the owner and guarantor before debt and missed payments accumulate.

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