Prague – Guarenty Group, in conjunction with AIM General Insurance, launched in Autumn 2011 the first residential Rental Income Guarantee for landlords in the Czech Republic and Central Europe. This new product enables residential landlords who suffer loss of income through tenant default to transfer the risk to the insurer. Several hundred landlords have already decided to protect their rental income and have taken out policies.
Based on a similar product that has been successful on the UK and US markets, Rental Income Guarantee enables landlords to claim up to six month’s unpaid rent within a 12 month period, therefore greatly reducing the exposure to periods where income is lost due to tenants defaulting.
Premiums are set at 5% of the annual net rent. Coverage can be provided for any residential property in the Czech Republic and is tied to the property not the lease contract, so for one premium the landlord can be covered for multiple tenants without the need to renew their policy. In addition to the insurance cover, Guarenty Group works closely with property lawyers and reality specialists to provide extra assistance and advice for landlords who find themselves involved in lease disputes over unpaid rents.
Guarenty Group’s Rental Income Guarantee also coincides with the deregulation of rental properties onto the private market. Guarenty Group Partner, Paul Kucera said: ‘Deregulation is casting a large number of previously regulated rental properties into the private sector. This in turn is creating a growing number of private landlords who are exposed to the risks inherent with renting on the open market. The Rental Income Guarantee will take away the most serious problem for these landlords, and allow them to focus on providing good quality rental accommodation and a profitable yield’.
Rental Income Guarantee is available through www.guarenty-group.com which has been designed to provide landlords and reality brokers with a one-stop-shop for premium and policy generation. The web is fully in Czech and English. Landlords can calculate their premium via the Quick Quote system for free to find out how much coverage they can receive on their property; paid policies can then be easily printed or downloaded. Should a landlord need to make a claim, the system has also been designed to facilitate this with a very minimum of paperwork. The landlord is covered once payment has been made.
About Guarenty Group s.r.o.
Guarenty Group is based in Prague, Czech Republic, with representation via real estate resellers nationwide. Guarenty Group is a Managing General Agent for AIM Insurance / MAI-CEE, who have are present in 22 countries in the greater CEE market Formed by a combination of real estate and insurance professionals, Guarenty Group has hands-on experience of managing tenants throughout the Czech Republic, managing arrears and managing the tenant change process.
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For more information, please contact:
Paul Kucera
+420 602 325650
[email protected]
www.guarenty-group.com
