On the market, there are two types of guarantees that protect the property owner against rental risks. These are the unpaid rent guarantee and the visa guarantee, which are two different products. The GLI (unpaid rent guarantee) is a contract signed between a private insurer and a property owner, whether it is an apartment, a garage, a car park or a house. What should I know about unpaid rent insurance and the CEGC’s GLI offer?
CEGC unpaid rent guarantee: what to know about this offer?
A subsidiary of BPCE, CEGC (Compagnie Européenne de Garanties et Cautions) is an organization that develops comprehensive offers of guarantees and sureties for individuals and companies in order to support them in project financing and securing their transactions. On the market, a CEGC offerwho is the fully digitized guarantee of unpaid rents appeals to its customers. This new offer is intended for owners and landlords. There are several reasons why you may choose this offer.
Firstly, subscribing to this contract entitles you to monthly compensation and you benefit from access to CLICK & LOC. The latter is a module for certification of the tenant and verification of the most important documents in his file. Thanks to this guarantee, you have the possibility to digitize and optimize your offer. The competent CEGC teams are at your disposal when managing claims. In addition, you have the opportunity to develop your management portfolio. For owner-lessor clients, they can have access to comprehensive insurance with lots of benefits. In addition, they can deduct all insurance premiums from their property income and benefit from rapid coverage of unpaid bills.
What is unpaid rent insurance?
The insurance of unpaid rents or the guarantee of unpaid rents is a cover that protects the owner of a dwelling who puts his property up for rent. This additional guarantee allows him to be protected against the unpaid rents of his tenants and against material damage to his accommodation. It is also a contract which can take into account a recourse to justice against a bad payment or grant compensation for the owner in the event of a premature departure of the tenant.
Thanks to this offer, the owner or the lessor ensures the security of the lessor’s income from the rental of the property. The GLI is a contract intended for owners and landlords. All the same, the GLI should in no way be confused with the Rental Risk Guarantee, which no longer exists. It should no longer be confused with the GUL (Universal Rental Guarantee) or even with the PNO insurance. It should be noted that the amount of the contribution of a GLI can be deducted from the property income of the owner when he makes an income tax declaration.
Which accommodations are covered by unpaid rent insurance and how does it work?
From the outset, it should be noted that the GLI is a contract for inhabited premises and sometimes for professional premises. Parking lots and garages are also part of the housing concerned. However, seasonal rentals, second homes, company accommodation, professional premises, unsanitary buildings are not affected by this contract.
Landlords can subscribe to this offer only if the tenant of the property is solvent in the eyes of the insurer. In addition, the accommodation must be the principal residence of the tenant for the contract to be signed. The GLI is a contract signed between a private insurer and the owner. In the context of unpaid rent, the owner must appeal to his insurer and follow the required procedure.
