In the rental market, security and confidence are essential for landlords, agencies and tenants alike. That’s why idealista and Aserta are launching a new tenant guarantee insurance – an innovative, exclusive product designed to offer peace of mind and ensure balance for all parties.
What is tenant guarantee insurance?
This is a surety bond, arranged and paid for by the tenant, that serves as a guarantee: in the event of non-payment, the insurer assumes responsibility to cover the landlord.
The tenant guarantee covers up to 12 months’ rent, the home’s main utilities (water, electricity and gas), and legal costs related to evictions or claims.
Exciting news: from 1 June 2025, the insurance offers unprecedented coverage – it also protects the tenant.
If the tenant loses their job (for employees), experiences temporary disability (for self-employed or civil servants), is hospitalised due to an accident or suffers accidental death, the insurer will pay up to seven months’ rent or provide compensation to the family, as applicable – all at no extra cost to the tenant.
Differences between tenant guarantee and tenant default insurance
Although the terms may seem similar, tenant insurance and tenant default insurance serve very different purposes:
Who takes it out and pays for it?
Tenant default insurance is purchased and paid for by the landlord. The landlord chooses whether to take out this protection and covers the cost of the premium, typically on an annual basis.
In contrast, tenant guarantee insurance is purchased and paid for by the tenant. While the landlord benefits from coverage and protection, they bear no cost or administrative responsibility. The tenant provides the policy as collateral to the landlord.
What does each one cover?
Tenant default insurance covers non-payment of rent and legal expenses, focusing primarily on protecting the landlord against tenant default.
By contrast, the tenant guarantee insurance goes further. It covers up to 12 months of unpaid rent, outstanding utilities (water, electricity and gas), up to 5% of the annual rent, applicable community fees and legal defence costs. As a major innovation, since June 2025, it also protects tenants in the event of unemployment, temporary disability, hospitalisation or accidental death.
Duration and renewal
Tenant default insurance is typically renewed automatically each year, although the landlord can choose annually whether to continue it.
The tenant guarantee insurance, however, is automatically renewed for the entire lease duration. The tenant is contractually required to make monthly payments throughout the lease term. If they fail to do so, the insurance company manages the resulting claims on the landlord’s behalf.
Consequences of not paying the premium
If the landlord fails to pay the tenant default insurance premium, the policy is cancelled and coverage ends.
By contrast, if the tenant stops paying the tenant guarantee premium, the landlord’s coverage remains in effect; the insurance company cannot cancel or withhold compensation for this reason.
Scope of insurance cover
Tenant default insurance can cover residential properties as well as commercial premises and warehouses. Tenant guarantee insurance, by contrast, is designed specifically for primary residences.
Tenant cover
Tenant default insurance provides no protection for the tenant, with all coverage aimed solely at the landlord. In contrast, the tenant guarantee includes protection for tenants – unique in the market and at no extra cost.
Price and payment method
The cost of tenant default insurance is typically 4.5% of the annual rent and is usually paid by the landlord, either as a single annual payment or in instalments.
By contrast, the tenant guarantee costs 5.4% of the annual rent, split into 12 monthly payments made by the tenant via bank card. This allows the tenant to spread the cost over the year, avoiding a large upfront expense.
How is the premium for tenant guarantee insurance calculated?
Assuming a tenant pays €1,000 per month, the annual rent totals €12,000. At a rate of 5.4%, the tenant guarantee premium would be €648 per year, payable in 12 monthly instalments of €54 by bank card.
This arrangement ensures the landlord receives full coverage and protection without any responsibility for managing or paying for the insurance.
Why choose a tenant guarantee?
These are some examples of the most common situations:
- Example 1: If a tenant on a permanent contract unexpectedly loses their job, the insurance company will cover up to seven months’ rent. This ensures the tenant can remain in their home while the landlord is protected from potential non-payment.
- Example 2: If a tenant falls behind on utility bills, the landlord is covered for up to 5% of the annual rent, with the insurance company managing the process.
- Example 3: A real estate agency receives a rental application from a pre‑qualified tenant, backed by formal payment guarantees from the insurance company. The transaction is completed quickly, securely and without any credit concerns.
What is the purpose of tenant guarantee insurance?
The tenant guarantee offers peace of mind, innovation and security for both tenants and landlords. It is the key to a safe and modern rental market.
The differences between the two products allow each party to choose the insurance that best suits their needs, providing transparency, protection and flexibility.
To calculate your monthly payment and obtain your guarantee certificate, visit idealista/seguros and start the process online today.