Rental Income Insurance: Smart Protection or Unnecessary Cost?
For property owners, unpaid rent is one of the biggest concerns when letting a home. To safeguard their rental income, many investors choose to take out rental income insurance (GLI) — a policy designed to compensate landlords in the event of non-payment and to cover the legal and administrative costs of recovering unpaid rent or repossessing the property.
Given that a rent recovery procedure can last one to two years and cost between €3,000 and €5,000, this type of coverage offers peace of mind and financial security — particularly for landlords with outstanding mortgages or high-value properties.
How Much Does Rental Income Insurance Cost?
The cost of rental income insurance generally ranges between 2% and 4% of the total annual rent (including charges), depending on the insurer and level of coverage.
💡 Good to know: For property owners taxed under the real income regime, the premium is deductible from rental income, offering a direct fiscal advantage.
Premiums are most often paid annually, though some property management agencies allow monthly payments through group contracts.
Tenant Selection: The Key to Being Properly Covered
To benefit from the protection of a rental income insurance policy, the tenant must meet specific criteria set by the insurer.
Each company has its own eligibility standards:
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Some only accept tenants with permanent employment contracts (CDI),
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Others include a broader range of profiles such as civil servants, self-employed individuals, or students with guarantors,
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Most require monthly income at least 2.5 to 3 times the rent (charges included).
Landlords should verify the tenant’s compliance with these requirements before signing the lease — otherwise, coverage may be denied in the event of default.
Additional Guarantees for Enhanced Property Protection
Beyond unpaid rent, insurance policies can also include valuable complementary guarantees, such as:
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Legal protection: covers disputes between landlord and tenant unrelated to non-payment (e.g. maintenance or deposit issues).
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Property damage coverage: reimburses the cost of repairing damage caused by the tenant.
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Vacancy coverage: compensates for the loss of rent during renovation or re-letting after damages.
These additional protections make rental income insurance a key tool in preserving real estate assets, especially within the luxury rental market.
Vaneau Real Estate – Securing Your Investment with Confidence
As a leader in luxury real estate in Paris, Neuilly, Brussels, Cannes, and Marrakech, Vaneau Real Estate assists property owners in the management and optimization of their investments.
Our experts offer tailored guidance on rental strategies, insurance solutions, and asset protection to ensure secure and profitable ownership.
📞 Vaneau Real Estate
Tel: +33 (0)1 48 00 88 75
📧 contact@vaneau.fr
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