How does the Tenancy Bond Insurance work?

Renting is a reality in the lives of most Brazilians, but without a good financial guarantee, it is not possible to sign a contract to have a place to live or work, in the case of entrepreneurs who rent real estate for their companies. That’s where Locaticia Bail Insurance comes in!

In the past, the deposit check or a guarantor were the most common ways to ensure that the renter would fulfill his commitments to the landlord. However, rental surety insurance is becoming increasingly popular with real estate agents as it is an option that replaces the other two old guarantees. 

Rent insurance provides coverage for any damage to the apartment or house and if the tenant fails to honor monthly payments. That is, it is good for both sides involved in this negotiation: the tenant and the owner!

Pause to end for good:

What is a deposit check? The deposit check, or deposit, is an amount to be deposited to the owner of up to 3 times the rent amount as a guarantee that, if there is a delay in payment, this amount will serve to cover this delay. 

What is a guarantor? The guarantor is that trusted person who can be appointed as a guarantee that he will pay the late rent if necessary. But that person must have a net income of more than 3 times the rent plus lease charges, such as condominium fees and IPTU. 

What are the rental surety insurance coverages?

For the property owner

For the owner of the property, Too’s rental surety insurance has default coverage as its main coverage. This means that, if your tenant does not pay the rent for more than three months and charges such as IPTU, water or electricity, you can contact the insurance broker or Too to start negotiating this delay.

If, even after negotiations, payment does not take place, Too will initiate negotiations for the process of vacating the property in the most humane and respectful way possible, always trying to renegotiate the debts.

You can also activate any assistance from the residential services we agreed on the contract, as I will talk about below!

to the tenant

For those who are going to live on rent, surety insurance offers 24-hour residential assistance that will save you there on a daily basis, if something happens while you are living there, such as:

  • electric labor
  • hydraulic labor
  • Keychain
  • Breaking glass
  • fumigation
  • Repairs in case of leaks or clogging in sewer pipes and grease traps
  • tile replacement
  • computer services
  • Home inspection offering: lubrication of locks and hinges, gutter cleaning; moving furniture and general services

All these assistances can be combined in a contract with an insurance broker, who is the best professional who can help you and offer the most advantageous insurance plan for your pocket and help you save on rent and still not have other values ​​to pay. Pay for repairs, if necessary.

How much does leasehold insurance cost?

The icing on the cake is the giant independence you will have, since as we mentioned above, rent insurance replaces the deposit check and the guarantor!And it even allows you to activate 24h Residential Assistance services.

“The installment payment can be the number of months of validity of the lease contract, which can be up to 60 months, in the case of rentals for commercial purposes”

explains Danielle Marques Araujo Santos, account executive at Too Seguros. 

In addition, as it is offered by an insurer specializing in rental surety insurance, the service is performed much more quickly and efficiently, including in the stages of credit and fraud analysis. Which speeds up the moving process of the future resident or local trader. 

In the link above, you can quickly talk to our team about Bail Insurance and see if it makes sense for you! Tibi is our online insurance broker and provides this digital service via whatsapp!

bargaining power

In addition, in rents that are made outside of applications, it is possible to have greater negotiating power! Maybe you don’t know, but some companies already show the value of rents with the closed price of this insurance.

But when talking to real estate agencies that accept the surety insurance option, the owner or tenant can negotiate the rent and its readjustment with different indexes. 

Another point is that the traditional market practice is for the tenant to pay the full amount of the renter’s insurance, but Too Seguros, specialized in this type of service, has been talking to landlords and real estate agents with the suggestion of flexibility and division of these costs. .

The services provided at the time of contracting this type of insurance can help in the maintenance and, in some cases, even in the valuation of the property! Hello owners!  

A safer rental for both sides

This is how you find your rental in a much more economical and safer way! For the owners, the income is maintained and they do not have to pay any damage to the property and furniture. For the tenant, a lot of independence, tranquility and quality of life in living with a rental that takes care of repairs, if necessary.

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