What is the guarantee given by the insurer?
The deposit is the financial guarantee issued by the insurer for the benefit of the landlord.
What documents make up your insurance contract?
- The insurance application
- The Special Policy Conditions
- The General Policy Conditions
- The bond certificate (the copy)
What is the purpose of rental guarantee insurance?
The insurer stands surety for any debts the policyholder may have in front of the landlord in connection with the lease contract and within the limits stated in the general policy conditions.
The landlord receives a surety bond he can use in the event of default on the part of the policyholder, as provided for by the general policy conditions. The policyholder is deemed to have defaulted if he fails to honour his obligations in front of the landlord at the end of and by virtue of the lease contract. The insurer's bond can only be invoked if the policyholder(s) fails to meet his/their obligations in front of the landlord. The insurer's guarantee supplements any other guarantees that policyholder has or should have taken out.
What is the maximum insurable amount?
The insurer's guarantee is limited to what is stated in the supplementary conditions and the rental guarantee bond certificate, and cannot exceed 3 months of rent.
What debts can be insured?
Only debts resulting from lease contracts subject to the law of 20 February 1991 on ordinary residence leases that concern property located in Belgium.
Only debts resulting from lease contracts subject to the law of 21 September 2006 on residential leases that concern property located in the Grand Duchy of Luxembourg.
Are furnished properties covered?
Yes, furnished properties are also covered.
What other obligations are incumbent on the policyholder?
The policyholder is required to notify Eurocaution Benelux SA forthwith of any claims made by the lessor under the lease contract mentioned in the insurance contract.
What exclusions are stipulated in the contract?
We do not cover sub-leases, nor changes of allotment.
What are the limits of the cover?
The total amount the insurer would have to pay the lessor, principal, interests and costs included, cannot exceed the amount of the surety bond stated in the rental guarantee bond certificate and in the supplementary conditions.
The lessee is required to take out any insurance policies needed to cover the rented property in the event of damage to the said property and/or its contents, as well as any liability relating to the property and/or its occupants.
With regard to the lessee, the lessor or any third parties, this guarantee can never replace any insurance that covers or should have covered the rented property in the event of damage to the said property and/or its contents, as well as any liability relating to the property and/or its occupants.
If the rented property is furnished, these limits also apply to the contents.
When does the cover take effect?
The insurance cover becomes effect, at the earliest when the lease contract takes effect or when the surety bond takes effect if an existing guarantee is replaced; subject to the following cumulative conditions:
- when this insurance policy and the copy of the original rental guarantee bond certificate is e-mailed to the policyholder;
- when original rental guarantee bond certificate is sent to the lessor by registered post;
- after Eurocaution Benelux SA receives payment of the first premium.
What is the maximum term of the contract?
This insurance contract can be concluded for a fixed term or an indefinite term but cannot be less than 1 year.
How is the contract renewed?
If the insurance contract is concluded for a fixed period, it will be renewed tacitly.
When does the insurance contract expire?
The insurance contract and the related surety guarantee will expire legally in any of the following cases:
- when the original rental guarantee bond certificate is handed over to Eurocaution Benelux SA;
- when the lessor waives all claims in connection with the rental guarantee bond in writing, stating the property covered by the lease contract, the policyholder's identity and the amount of the bond;
- in the event of nullity and/or termination of the lease contract for any reason whatsoever;
- in the event of the lessee's death.
Subject to the insurer's express agreement, if the lessor and the policyholder are unaware of any new element likely to involve the insurer at the time of the outgoing inventory of fixtures and fittings, the guarantee will remain in force even after the end of this contract subject to the following cumulative conditions:
- the policyholder and lessor are acting in good faith and have not committed any offence or been negligent when drawing up the outgoing inventory of fixtures and fittings;
- the new element could not reasonably have been detected at the time of the outgoing inventory of fixtures and fittings;
- the claim notification in connection with this new element is made within three months of the end of the lease contract.