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Insurance against loss of rent for proprietors

Special protection against loss of rent for industrial premises due to non-payment by the tenant – including utilities and extra charges

The law tends to protect tenants and leaseholder in the first place. But what happens if the tenant will not pay any more? Not only does an ejectment cause lots of costs and trouble, but at the same time there is the loss of rent for many months, including utilities and charges, until a new tenant can be found. Are you in the position to shoulder all these expenses and losses on your own?

Up to now, such cases were the sole risk of the landlord, but to cover that risk, we have created a Loss of Rent Insurance, which will stand in if the tenant for example is unable to pay his rent, utilities and charges due to a weak economy. Such insurances do not have to be tedious, difficult and pricey any more - our product is the best example for that.

What kind of landlord should be especially interested in our product?
  Initiators of rental funds (closed-end investment companies) like hotels, nursing centres, shopping centres …
  Owners of industrial premises (trading centres, shopping malls, offices, production plants)

Which requirements should be met?
  The gross annual rent including utilities and charges has to be 50.000 Euro minimum
  Annually, a maximum amount of 2.500.000 Euro can be insured
  For each tenant, there will be an extra contract
  The contract period of the insurance cover can be 1, 3, 5 or 10 years
  The maximum benefit period of a contract will be 1 or 2 years

What is the premium based on?

The crucial factors are the amount of the rent and the creditworthiness of the tenant. The property being rented is not important – only for rental funds (closed-end investment companies) there will be a loading.

The creditworthiness is calculated using the Creditreform-Index. The lower the index, the lower also the premium, but please note that an insurance is no longer possible from an index value of 350 on. If you wish, we will be happy to calculate the creditworthiness of the tenant for a flat charge.

And the premiums?

Let us take an example with a 12 month insurance cover:
• Annual rent € 100.000
• Duration of rental agreement 5 years
• Creditworthiness index of tenant 238
• Coverholder in Germany

Please note our terms in our General Terms and Conditions.

Would you like more information? You can download all documents here or just send us an Email.

Copyright © 2006-2007  Wunderlich Financial Consulting; last modification 06.05.2008