If my rent guarantee insurance will not pay, what can I do?

Question

José Manuel Alburquerque · Accepted Answer

Ask in writing for the reason for the refusal and the clause on which it is based. The most common reasons are that the tenant did not pass the insurer's credit check, that the non-payment began during the waiting period (“período de carencia”) of the first few months or that the insurer was notified late. The law does not allow the insurer to refuse payment merely because it was notified late, only to claim for the loss that the delay caused it. If the refusal does not stand up, complain to the company, then to the “Dirección General de Seguros y Fondos de Pensiones”, Spain's insurance regulator, or go to court, within two years. The usual grounds for refusal The tenant was not approved by the insurer before the tenancy agreement was signed, or the tenant was changed without the insurer being informed. The non-payment began before the insurance was taken out or during the waiting period, which is usually one to three months. The non-payment was reported or the documents were provided outside the time limit set in the policy, or eviction proceedings were not brought when the insurer asked for them. What is being claimed is not covered by your policy, as is the case in many policies with utility bills or damage to the property, or it exceeds the limit on the number of months or on the amount. How to defend your position If the clause being applied to you cuts back what you could expect from the insurance, it must be highlighted and signed separately. If it is not, it cannot be applied to you. Waiting periods on the main cover can be of this kind. If you are told that you gave notice late, remember that the law only allows the insurer to claim from you the loss that the delay caused it. If it already knew about the non-payment by some other means, not even that. If the insurer alleges that you failed to declare something when you took out the policy, only what the insurer asked you in its questionnaire counts. And if there was no wilful misconduct or gross negligence, it can only reduce what it pays, not refuse to pay. Complain in writing to the insurer's customer service department, which has one month to reply. If it does not reply or maintains its refusal, you can go to the regulator or bring a claim in court. If you are a consumer, that prior complaint also counts as the attempt to reach an agreement that the law requires before going to court. If the refusal was not justified, the insurer will also owe late-payment interest. In the meantime, the eviction Do not wait for the insurer before taking action against the tenant. If the policy includes legal expenses cover for the eviction, ask for it even if you are in dispute with the company over payment of the rent, because the law treats it as separate cover and allows you to choose your own lawyer. Since April 2025, before bringing a claim you must make a genuine attempt to negotiate with the tenant. And if you demand payment from the tenant by a means that leaves a record at least thirty days before bringing the claim and the tenant does not pay, he or she will no longer be able to avoid eviction by paying at the last minute.