Financial expert discovers the potential of rent loss insurance at ARAG

Financial expert discovers the potential of rent loss insurance at ARAG

According to a report by www.faz.net, rent loss insurance is an insurance policy that provides apartment landlords with payment if the tenant fails to pay or vacate the apartment. This type of insurance is established in other countries, but is still a niche in Germany. ARAG offers this insurance at an annual premium of 99 euros for half the year or 120 euros for the whole year.

Landlords in Germany are often advised to take out rent insurance to protect themselves against non-payment by tenants. Loss of rent insurance can protect the landlord from financial losses if the tenant does not pay or vacate the apartment. This is particularly relevant during economically uncertain times such as the current COVID-19 pandemic, as many tenants may experience financial difficulties and delay or suspend their rent payments.

The impact of this insurance on the market could be significant because by purchasing rent insurance, landlords may be willing to accept new tenants that they would reject without this insurance. For consumers, this could mean having access to a wider choice of rental properties as landlords feel protected by the insurance policy.

Overall, rent loss insurance could make the real estate market more transparent and accessible for landlords and tenants by reducing risks for landlords and this could lead to greater rental choice for consumers.