The crisis generated by Covid-19, beyond the social-health field, has also left important economic consequences at all levels. One of the consequences that has been detected over the last few months is the increase in cases of non-payment of rents.
One group that has been particularly affected is the case of foreign citizens who have rented out their homes in Spain, either because they are unable to travel or because the home is an investment made to obtain economic profitability. Faced with the situation of not being able to travel to Spain, or the uncertainty of when they will be able to do so, one solution has been to rent out the properties during this period of time, and now there are situations of non-payment by the tenants.
One service that is increasingly in demand is insurance dedicated to non-payment of rent. Although it is most common for this insurance to be formalised at the time a rental contract is signed, it can also be taken out at any time during the duration of the rental contract.
In case of non-payment, these insurances usually cover the monthly rent for a period ranging from 6 months to 12 months. In addition, this type of insurance usually also covers damage to the property, theft of objects from the property itself, and even the costs of possible legal proceedings.
In cases in which the owner has to face the non-payment of the monthly rent of the property and has taken out a non-payment insurance policy, he/she must notify this as soon as the debt is incurred.
It is worth remembering that it is considered non-payment one month after the agreed payment date. If the time is less, it will be considered as a delay. In addition, the landlord is also obliged to formally notify the current tenant of the outstanding debt.
When the non-payment is prolonged and reiterated over time, it is possible to file an eviction lawsuit for non-payment, and the insurance company contracted may advance the unpaid instalments as stipulated in the cover.