Your rent arrives. Every month.
Even when your tenant stops paying.
You let a flat or a house in Luxembourg. If your tenant stops paying, the insurer pays the rent in their place, carries the legal procedure and covers the damage found when they move out. You stay a landlord instead of becoming a debt collector.
Would your file be accepted?
Two conditions decide whether a tenant is accepted. Check them in ten seconds, before filling in anything.
- Guaranteed rent
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- Minimum income required
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This check reflects the rules in the policy conditions. Only the agency can confirm acceptance.
The rent gets paid
Rent and charges as declared when the policy starts, within the number of covered months agreed in the contract.
The lawyer gets paid
Debt recovery, termination of the lease and eviction proceedings are covered under defence and recourse.
The property gets repaired
Damage found when the tenant leaves is indemnified, normal wear and tear deducted.
The contract is concluded with Baloise Assurances Luxembourg S.A., through the Ortis Assurances agency in Howald.
What the policy covers
Four covers, taken together or separately depending on your particular conditions.
Unpaid rent
Reimbursement of the guaranteed rents your tenant fails to pay, within the number of covered months and less the excess.
Damage to the property
Damage found when the tenant moves out, normal wear and tear deducted, plus the rent lost while repairs are carried out.
Rental void
Compensation while the property stands empty between two tenants, after the waiting period. Optional cover, to be noted in the particular conditions.
Defence and recourse
Costs of amicable or contentious recovery, termination of the lease and eviction proceedings, once the amount at stake exceeds €500.
Your tenant stops paying. What happens?
The contract sets a precise timetable. Keeping to it is what secures the payout — the one point where you have to be strict.
First rent unpaid
The due date passes without payment. Note it down.
Second rent unpaid
The second instalment also falls due unpaid.
Registered letter
You send the tenant a registered reminder with acknowledgement of receipt covering both months.
Claim declaration
You declare the claim with the lease, the reminders, the supporting documents and the tenant account statement. The lawyer takes over.
First payment
The first three unpaid rents are paid to you, less the excess. After that, monthly against a statement.
Except in cases beyond your control, rent lost between day 60 and a late declaration is not indemnified.
What has to be in place
Three things govern the cover: the tenant, the lease and the inventory of condition.
The tenant
- A monthly net income of at least two guaranteed rents.
- A stable situation: income above three guaranteed rents, a permanent contract of over a year, a permanent contract of under a year past probation, or a pension.
- Failing that, a joint guarantor who is tax resident in Luxembourg with a net income of at least four guaranteed rents.
- Tenant already in place: no arrears, and no payment incident over the last three months.
The lease
- A lease compliant with Luxembourg law in force.
- A property located in the Grand Duchy of Luxembourg.
- Residential use. Business premises are excluded, apart from office and liberal professions.
- No legal or family connection between you and your tenant.
The inventory of condition
- An inventory drawn up when each tenant moves in and moves out.
- Agreed between both parties, or drawn up by a bailiff.
- If none exists when you apply, the company appoints an expert to draw one up.
What cannot be insured
Sublets, seasonal lettings, precarious lettings, lettings to a relative, property outside the Grand Duchy, and leases that do not comply with the law.
Landlord questions
My tenant is already in place. Can I still insure?
Yes, provided they are up to date with rent and charges. If they have been there for at least three months, there must have been no payment incident in the last three months. If less than three months, they must meet the conditions for accepting a new tenant.
Is the guaranteed rent the bare rent or rent including charges?
The rent declared when the policy starts plus the rental charges. That figure is the basis both for the minimum income required of the tenant and for the indemnity.
When do I get the first payment?
From the fourth month, for the first three unpaid rents, less the excess, provided the claim file is complete. Later payments are monthly, against the tenant account statement.
What if I have no entry inventory?
If one exists, it serves as the basis for the cover. If none exists when you apply, the company appoints an expert to draw one up.
On what conditions does the rental void cover apply?
The property must be let when the policy starts, with no notice given and no arrears, and must already have been let for more than six months at some point. A three-month waiting period applies to each claim, and six months must separate two indemnified claims.
I let a flat to my daughter. Is that covered?
No. Lettings to people connected to you legally or by family are not insurable, any more than sublets or seasonal lettings.
Get your property quoted
One form, five minutes, an answer from the agency within 24 hours.