Location: all you need to know about unpaid rent insurance

How to activate the Unpaid Rent Guarantee?

If the tenant in place stops paying his rent, the Garantie Loyer Unpaid (GLI) takes over by paying the owner the equivalent of the amount of the rent. In the event of an incident, the owner must take several steps to be able to be compensated. First, he must send the tenant a follow-up letter with acknowledgment of receipt, then a formal notice if he does not receive a response within 15 days. If the tenant still does not follow up, the landlord can then have him issue an order to pay through a bailiff. If the problem is still not solved and the situation gets bogged down, the owner can contact his insurance company by sending him a declaration of loss. Finally, the clarification that the indemnities are not paid as soon as the claim is declared. usuallythe owner is compensated within 3 months after the occurrence of the first payment default. Nevertheless, the Unpaid Rent Guarantee is retroactive: the landlord will ultimately be compensated for all of his unpaid rent.

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