Loss of Rent: Rent Securely & Stress-Free
Protect yourself reliably as a landlord from financial losses due to missed rent payments and property damage with nextsure Rent Default Insurance.
Protection in Case of Payment Default
Coverage for property damage
Assumption of clearance costs
What is rental income protection insurance and how does it protect landlords?
Comprehensive protection against rent defaults
Protection against property damage
Assumption of Renovation Costs
Ideal for private landlords
Why landlords should not forego rental loss insurance
Renting out property is an attractive investment, but it also comes with financial risks. One major risk is rental default, whether due to the tenant’s inability or unwillingness to pay, up to the issue of 'rental nomads'. Such defaults can severely impact your liquidity and reduce planned returns. Additionally, there are often substantial costs for property damage, caused either maliciously or through neglect, as well as expenses for eviction and refurbishment. Landlord rent guarantee insurance, such as that offered by nextsure, provides you with an essential shield of protection. It secures your rental income, covers the costs for restoring your property, and thus minimises your financial risk. Consider this insurance as a necessary investment in the security and profitability of your property, which also helps to avoid stress and protracted disputes. With nextsure, you are choosing a digital and reliable partner for your landlord security.
Your benefits as a landlord
Comprehensive protection for your property and rental income
Loss of rent
Protection against missed rental payments
Property damage
Coverage for damage to your property
Renovation
Coverage of necessary repairs
Eviction costs
Support with court-ordered eviction
Vandalism
Protection against wilful damage by tenants
Consequences of Vacancy
Protection against consequential damages during vacancy
Immediate assistance
Swift support in case of damage
Tariff selection
Flexible tariffs for your individual needs
DigitalPlus
Simple online management and claims reporting
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Scope of coverage: These damages are covered by your rental income protection insurance from nextsure
The rent loss insurance from nextsure provides comprehensive protection tailored specifically to the needs of landlords. The core benefit is the reimbursement of lost net cold rents if your tenant fails to meet their payment obligations – for a period of 6, 12, or even 24 months, depending on the selected plan. Additionally, you are covered against property damage caused by the tenant. This includes damage from vandalism, wilful destruction, or significant neglect of the rental property. The insurance covers the necessary renovation and repair costs to restore your property's original condition. It can also cover the costs of professional cleaning, disinfection, and clearance, for example, in cases of hoarder apartments. Another important aspect is the coverage of costs for vacating the property if ordered by the court. Please note that the exact scope of benefits may vary depending on the plan and certain conditions, such as a completed credit check of the tenant or a possible excess, must be taken into account.
Costs and Factors: What influences the premium of your rent default insurance?
The costs of rental loss insurance depend on various factors and can therefore vary. A key factor is the amount of the monthly gross cold rent of your leased property, as this directly determines the potential loss amount in the event of rent default. The chosen sum insured or the period for which rent defaults are to be covered (e.g., 6, 12, or 24 months) also plays a role. Furthermore, the amount of an agreed deductible can affect the premium: A higher deductible usually results in a lower insurance premium. The location and type of property can also contribute to risk assessment and thus influence the premium calculation. Additional benefits, such as covering costs for eliminating damage caused by pest infestation or securing vacancy costs during renovation, can also affect the premium. At nextsure, you receive transparent information about the costs and can quickly and easily determine a premium tailored to your needs through our digital tariff calculator.
Requirements and exclusions: When does the rental loss insurance provide coverage?
For the rental loss insurance to pay out in the event of a claim, certain conditions must be met and there are typical exclusions that you should be aware of. A fundamental requirement is often proof that you, as a landlord, have fulfilled your due diligence duties, for example, by conducting a credit check of the tenant before concluding the rental agreement. The rental agreement itself must be legally valid. The insured event usually occurs when the tenant, despite reminders and setting of deadlines, is in arrears by at least one or two months' rent or has damaged the property contrary to the contract. It is important to report the damage to the insurer without delay. Typical exclusions include damages that existed prior to the start of the insurance, damages due to normal wear and tear, and rental losses due to vacancies between two rentals without an insured reason. Damages caused by war, civil unrest, or nuclear energy are also usually excluded. At nextsure, we emphasize clear and understandable insurance conditions, so you know exactly when and how you are protected.
Tenant loss due to rent nomads: How nextsure's insurance protects you
Tenant nomads are the nightmare of every landlord. They move into a flat, often pay only the first rent or deposit, and then stop payments while living in the property or even intentionally causing damage. The financial consequences can be significant: months of rental losses, high costs for renovation, clearance, and legal proceedings for eviction. This is exactly where nextsure's rental loss insurance protection comes in. Our insurance not only covers the lost rental income caused by tenant nomads but also covers the costs of rectifying the damage and contamination left behind. This can include refurbishing neglected rooms, repairing destruction, and professional cleaning. Additionally, the costs for vacating the property and disposing of abandoned debris can also be covered. With nextsure's rental loss insurance, you protect yourself against the financial disaster that tenant nomads can cause and receive the necessary support to quickly make your property rentable again.
Digital & Fast
Complete and manage online
Fair & Transparent
Clear terms, no hidden costs
Comprehensive & Secure
Strong Protection for Landlords
Property damage by tenants: What role does rent guarantee insurance play?
Alongside missed rental payments, property damage caused by tenants represents a significant financial risk for landlords. Whether it be wilful destruction, gross negligence, or neglect – the costs for repairs and renovations can quickly reach into the thousands. Nextsure's rent loss insurance plays a crucial role here by also covering such property damage. Typically covered are damages to floors, walls, doors, windows, as well as sanitary facilities and permanently installed fixtures that belong to the landlord. This can include, for example, the repair of damaged parquet floors, painting heavily soiled walls, or replacing destroyed sanitary objects. Even damages discovered after the tenant has moved out may be insured. It is important that the damages go beyond normal wear and tear and are clearly caused by the tenant. The rent loss insurance thus helps you maintain the value of your property and minimise the costs of restoring it to its contractual condition.
The right tariff: How to find the suitable rental loss insurance with nextsure
Choosing the right tariff is crucial to ensure optimal and needs-based protection through your rent loss insurance. At nextsure, we offer flexible tariff options tailored to various needs and risk appetites. First, consider which risks are most relevant for you. Is it primarily the pure rent loss, or do you place greater value on securing against extensive property damage? An important factor is the insurance sum or the maximum period for which rent losses are reimbursed—periods of 6, 12, or 24 months are common here. Also, check which types of property damage are covered and up to what amount. Pay attention to the amount of the deductible: A higher deductible can reduce the premium, but it also means that you will bear a larger part of the costs yourself in the event of a claim. Our digital insurance calculator on the nextsure website enables you to easily compare different tariff options. In addition, our expert team is at your service to help you find the tariff that perfectly fits your individual letting situation and offers you maximum security.
Rental Loss Insurance vs. Rental Deposit Guarantee: The Key Differences for Landlords
Often, the rent loss insurance and the rental deposit guarantee are confused or their differences are not clearly recognized. While both products offer a form of security for landlords, they cover different areas of risk. The rental deposit guarantee (often also called rent guarantee) replaces the traditional cash deposit. In this case, an insurance company or bank guarantees the tenant's obligations from the rental agreement up to the amount of the agreed deposit. It primarily serves to secure claims that are typically covered by a deposit, such as unpaid utility bills or minor repairs upon move-out. Rent loss insurance, on the other hand, offers much broader protection. It comes into effect in cases of long-term rental losses, for example, if the tenant becomes insolvent or turns out to be a squatter. It also often covers significant property damage to the rental object and the associated renovation or eviction costs, which can far exceed the usual deposit amount. While the deposit guarantee facilitates the tenant's liquidity at the beginning of the tenancy and provides basic security, the rent loss insurance is specialized protection against existentially threatening financial losses for you as a landlord. Both products can complement each other, but do not replace one another.
For which landlords is rental income insurance particularly useful?
Should the worst-case scenario occur and your tenant fails to pay the rent or has caused damage to your property, a swift and correct approach in reporting the damage is crucial for smooth processing through your rent default insurance. You should first issue a written warning to the tenant and provide them with a reasonable deadline for payment or rectification of the damages. Carefully document all steps: rent arrears, correspondence, and photos of the damages. As soon as it becomes apparent that the tenant is not meeting their obligations or the damage exceeds the usual extent, report the incident promptly to your rent default insurance. At nextsure, you can conveniently do this digitally through our customer portal. Have all relevant documents ready, such as the rental agreement, proof of the rent amount, the warning letters, and a detailed list of claims or damages. Our claims experts will promptly get in touch with you to discuss the next steps and guide you through the process. Transparent and complete communication helps expedite the processing so that you can receive the benefits to which you are entitled as quickly as possible.
