How does it work in practice?
With a formula such as AG Insurance's Pack Verhuurder (landlord pack), the first step is to look for an amicable settlement. If that fails, and the unpaid rent exceeds the rental deposit, court proceedings are started.
- You do not have to advance anything yourself: legal costs, your lawyer's fees and expert fees are covered.
- After the judgment, the costs of any eviction are also paid.
- Pending the judgment, you receive an advance on the unpaid rent, up to the amount of the rental deposit.
- If the judgment is in your favour, the rest of the insured rent is paid out, up to a maximum of twelve months' rent, with no excess.
For the same tenant, you can only claim under this cover again at least three years after a previous claim. The exact terms are set out in the IPID sheets (insurance product information documents) of DAS (real estate formula) and AG Insurance (Pack Verhuurder), available at our office.
Who is it for?
For landlords of a house or flat that the tenant uses as their main residence. If you let commercial premises, we look at tailored 'real estate' legal expenses cover.
Frequently asked questions
Can I take out this insurance if the problem already exists?
No. As with all legal expenses insurance, the policy only covers disputes that arise after the start of the contract (and after any waiting periods). So take it out at the start of the tenancy.
Can I combine it with property management?
Yes. As your property manager, we monitor the rent payments and step in early.