What Is Rent Default Insurance and Why Should You Have One?

“What if the tenant stops paying?”

That’s the big question.
And it’s the reason many people hesitate to rent out their property, even when they want to.

But here’s the good news:
There’s a simple, legal, and affordable way to protect yourself.
It’s called rent default insurance.

What is rent default insurance?

It’s an insurance policy that covers you if your tenant stops paying rent.

Most policies also include:

• Legal defense

• Legal assistance during an eviction

• Coverage for property damage

• Court and legal fees

Think of it as having a lawyer and financial safety net in your back pocket.

How much does it cost?

It depends on the monthly rent, but it usually ranges between 3% and 5% of the annual rental income.

For example:

• Monthly rent: €1,000

• Insurance cost: approx. €300–€500/year

• Coverage: up to 12 months of unpaid rent

Is it worth it? Yes. Every cent.

How do you get one?

You’ll typically need:

• A signed rental contract

• Tenant documentation (to assess risk)

• Sometimes, a copy of the land registry or property tax receipt

If you work with us, we handle the entire process for you.
You just sign.

What if the tenant doesn’t qualify?

That’s exactly the kind of filter you need.
If they don’t meet the requirements for insurance, they may not be the right tenant.
That’s where our experience helps you choose wisely from the start.

Real advantages of having rent default insurance:

• You sleep peacefully at night

• You don’t lose income if something goes wrong

• You have a clear legal process in place

• You show professionalism and commitment to protecting your investment

Want to rent with full protection?

Let’s talk.
We’ll tell you if your property and potential tenant can be insured, what it would cost, and how to handle it all—without complications.