What Is Renter’s Non-Payment Insurance in Spain (Seguro de Impago de Alquiler)?
If you’re apartment hunting in Valencia, you’ll hear one phrase again and again:seguro de impago de alquiler—renter’s non-payment insurance. In plain English, it’s a policy that protects the landlord if a tenant stops paying rent. In the last few years this has gone from “nice to have” to “standard,” especially in cities with competitive rental markets like Valencia, Madrid, and Barcelona.
As a relocation coach, mom of two girls, and founder of LaVidalencia, I’ve watched this insurance product make it easier for owners to say “yes” to new arrivals—particularly expats with foreign income.
Below I’ll break down what the insurance covers, what documentation you’ll need as a renter, options if you don’t have a Spanish work contract yet, how much it typically costs (with real numbers for Valencia), and which companies are most commonly used—including Finaer, a provider we’ve used successfully with international clients.
Why Spanish Landlords Ask for Non-Payment Insurance
Most landlords in Spain are individual owners. They rely on rent to pay mortgages or supplement family income, and they don’t have corporate risk buffers. Non-payment insurance gives them peace of mind: if the tenant defaults, the insurer steps in (usually after a short waiting period) to pay missed rent and cover legal costs for eviction if needed. Because the insurer pre-checks a tenant’s solvency, a guaranteed policy can also speed up approvals—very helpful if you’re new in Spain and competing for a great flat.
What This Insurance Typically Covers
Coverage varies by company and by policy, but most Spanish “impago” policies include some combination of:
Unpaid rent: Payment of missed monthly rent for a defined period (commonly 6–12 months).
Legal defense & eviction costs: Lawyer fees, court fees, and formal proceedings associated with recovering the home.
Vandalism or damage (optional): Some insurers add a damage rider up to a fixed limit.
Telephone/legal helplines: Guidance through claims, notices, and timelines.
Important: these policies protect the landlord, not the tenant. But as a tenant, qualifying for coverage is often the key that unlocks the apartment you love.
Who Buys It—and Who Pays?
Traditionally the landlord purchases the policy, because the policyholder is the one receiving benefits. In practice, some owners build the cost into the rent or ask tenants to reimburse it annually. Either way, you’ll almost always be asked to provide documentation so the insurer can approve you.
Premium Examples: How to Estimate Your Own
Take your expected monthly rent × 12 to get annual rent, then multiply by 3–5% for a ballpark premium. A €1,300/month home is €15,600/year; 3–5% gives €468–€780 as a reasonable annual range for non-payment coverage.
These are representative ranges; exact pricing depends on the insurer, coverage months (e.g., 6 vs 12), any damage add-ons, and underwriting results.
For context and a quick primer in Spanish, Idealista has a helpful explainer on costs and how insurers calculate them: ¿Cuánto cuesta un seguro de impago de alquiler?
Documentation You’ll Be Asked to Provide (Tenants)
Because the insurer is guaranteeing rent, they verify solvency. Expect to be asked for the following (Spanish or English is usually fine—ask if sworn translations are needed):
Identification: Passport, NIE/TIE if you have one.
Employment & income proof: Spanish work contract (contrato indefinido or temporary), and the last 3 payslips. If you’re abroad, a contract from your foreign employer plus recent payslips can work. For US based employees, an Offer Letter may suffice, but it’s up to the insurance company.
Bank statements: Typically last 3–6 months showing salary deposits or regular income.
Tax returns: Spain (IRPF) if applicable, or foreign returns (e.g., U.S. 1040 with W-2s/1099s) to support your income story.
Proof of funds: Savings/investment statements if your income is variable (common for freelancers/remote workers).
Rental history: Prior lease and contact for reference, if available.
Plan to submit PDFs and ensure names and account numbers are legible. A clear, well-labeled packet shortens approval times—this is one place where a relocation partner can be worth their weight in gold.
No Spanish Work Contract? Your Options
Good news: many expats rent successfully without a Spanish employer. Here are paths we regularly use with clients:
Use an expat-friendly guarantor/insurer: Finaer specializes in verifying foreign income (bank statements, payslips, tax returns) and issuing a guarantee landlords accept. For students or digital nomads, they’ll consider non-Spanish contracts and can often pre-approve within days.
Show strong savings: If your monthly rent is €1,200 and you can show 12–18 months of rent in cash equivalents, several insurers consider that enough solvency, especially combined with low fixed expenses.
Provide a co-signer (avalista): A Spanish-resident guarantor with stable income can satisfy underwriting when you’re newly arrived.
Bank guarantee (aval bancario): Your Spanish bank blocks a set amount (commonly 6–12 months’ rent). Not every newcomer can or should do this, but it’s powerful if you have funds in Spain.
Higher deposit or prepaid months: Within legal limits and if acceptable to both sides, offering extra month(s) upfront can bridge gaps while your insurer completes verification.
Choose a landlord who already holds the policy: Some owners carry a blanket policy and only need to pass you through solvency checks—quicker and simpler.
Leading Companies You’ll Hear About
Finaer (Guarantía de Alquiler)
Finaer provides a “guarantee” accepted similarly to insurance. The big benefit for expats: they evaluate foreign income and documentation, which can be a lifesaver if you’re on a U.S. payroll, a remote contract, or self-employed abroad. In our client cases, Finaer has turned a near “no” into a confident “yes.”
Mutua de Propietarios
A traditional Spanish insurer focused on landlords, Mutua de Propietarios offers rent-nonpayment coverage with legal defense and optional damage riders. Policies are typically purchased by the owner or their agency property manager.
Allianz (Protección de Alquiler)
Allianz Spain offers products aimed at landlords that combine non-payment protection with legal coverage. Good nationwide reach, strong claims infrastructure.
ARAG (Legal Defense & Non-Payment)
ARAG is known for legal defense policies in Spain and has versions that include rent default. Agencies like ARAG can be particularly helpful with the procedural side (burofax, filings, timelines).Tip:Your real-estate agency may have a preferred partner. That can streamline underwriting, but it’s still worth comparing coverage months, waiting periods, and whether they accept foreign documentation.
How the Approval Process Usually Works
Application: The owner or agent sends an insurer’s online form. You’ll upload documentation.
Solvency check: Insurer verifies income, stability, debt ratios, and sometimes employer references.
Decision & terms: Approval comes with conditions (e.g., maximum rent amount, required co-signer, or specific coverage months).
Policy issuance: The landlord purchases/activates the policy or guarantee, often before key exchange.
Turnaround can be 24–72 hours if your documents are tidy. International income can add a few days—build that into your apartment-hunting timeline.
What Landlords and Insurers Look For
Income-to-rent ratio: As a rule of thumb, monthly rent ≤ 30–35% of net income is comfortable.
Stability: Permanent contract or predictable remote income, length of employment, low debt.
Clarity: Clean, consistent documents (names, dates, balances). Red flags slow things down.
Professionalism: Quick responses, organized files, and respectful communication truly matter here.
Amanda’s Checklist: How to Prepare Your Packet
Passport + NIE/TIE (if you have it).
Employment contract (Spanish or foreign) and last 3–6 payslips.
Last 3–6 months of bank statements showing regular deposits.
Most recent tax return (U.S. 1040 or other).
Proof of savings/investments—PDFs with balances visible.
Prior lease or landlord reference (if available).
Short cover note: “Here’s who we are, our monthly income, why we’re moving, how long we plan to stay.” It humanizes the file.
How This Fits Into Your Apartment Hunt
Because owners often list and show new rentals mid-week for weekend visits, timing is everything. Set email alerts, keep documents ready, and be prepared to apply the day you tour. If you need help curating properties, scheduling visits, and presenting your best self to owners and agencies, our Apartment Hunting / Home-Finding service does exactly that—end-to-end, Valencia-style. We also advise on visas—if your path is the Digital Nomad Visa or Non-Lucrative Visa, we’ll help you gather the right proof of income and insurance from day one: Visa Guidance.
Our Take: Insurance as a Bridge to Trust
Moving countries is a big, brave leap—kids, pets (hi from Bobby and Tony, our two Chinese Cresteds), new schools, new food, new everything. Spanish landlords aren’t trying to make life harder with requirements; they’re asking for a safety net in a system where evictions can be slow. Non-payment insurance is the bridge between your “new here” and their “I need to sleep at night.” When we frame it that way, everyone relaxes—and more keys land in more happy hands.
Frequently Asked Questions
Is non-payment insurance mandatory by law?
No. But it has become a de facto standard owner requirement. If you’re asked for it, it’s not a red flag—it’s a sign the owner is cautious, not inflexible.
What if my income is irregular?
Freelancers and business owners rent all the time. Provide more months of statements, past-year tax returns, and stronger savings. Insurers like Finaer are set up for this scenario.
Can I offer a bigger deposit instead?
Sometimes, yes—within legal limits and if both parties agree. However, many owners still prefer the predictability of an insurance guarantee.
Helpful Resources
Finaer (Guarantía de Alquiler) — expat-friendly verification of foreign income.
Idealista: Cost of non-payment insurance — Spanish-language overview of pricing & coverage.
Mutua de Propietarios — landlord-focused impago policies.
Allianz Spain — rental protection products with legal coverage.
ARAG Spain — legal defense and rent default solutions.
LaVidalencia: Apartment Hunting / Home-Finding — short-list curation, tours, negotiation, and documentation prep.
LaVidalencia: Visa Guidance — NLV, Digital Nomad, student visas, and document checklists.
—Amanda Chigbrow
Founder of LaVidalencia
@LaVidalencia | LaVidalencia.com