Unpaid rent insurance: does it exist in Belgium?
Does unpaid rent insurance (GLI) exist in Belgium? Available alternatives, cost, coverage and comparison with the standard rental deposit.
Rent guarantee insurance in Belgium: current situation
The rent guarantee insurance (GLI) as known in France (a standardised contract guaranteeing unpaid rent) does not exist in Belgium. A few insurers offer similar products but they remain niche and more expensive. The primary protection for Belgian landlords remains the rental deposit (2 or 3 months’ rent).
Why is the GLI marginal in Belgium? Several reasons: the rental deposit system is well-established, the Justice of the Peace handles eviction cases relatively quickly (2-6 months), and the Belgian insurance market has not developed a standardised product.
The few available products cost between 2.5 and 4% of annual gross rent. For a rent of EUR 800/month, expect EUR 240 to EUR 384/year. Coverage is generally limited to 12-18 months of non-payment.
Alternatives to rent guarantee insurance
The rental deposit
The rental deposit (2-3 months’ rent) is the standard protection in Belgium. It is placed in a blocked account and covers non-payment and property damage.
Solvency check
Before signing, verify the candidate tenant’s solvency:
- Income of at least 3 times the rent
- Stable employment contract
- No negative entries in the Central Individual Credit Register
Parental guarantor
A solidary guarantor (usually a parent) commits to paying rent if the tenant defaults. This is common for student leases.
Rigorous tracking
The best protection is quick reaction: at the first missed payment, send a reminder. After 15 days, send a formal notice by registered letter. After 1 month, consider referring to the Justice of the Peace.
Preventing non-payment
- Check solvency thoroughly before signing (income, employment, references)
- Require a rental deposit of the maximum amount (2 months, or 3 if EPC A-D in Brussels)
- Set up a standing order for rent payment
- Maintain a good relationship with the tenant (communication prevents late payment)
- Use a rental management software that alerts you at the first missed payment
In case of non-payment
Step 1: Amicable reminder (day 1-7)
Contact the tenant by phone or email. A simple oversight is the cause in most cases.
Step 2: Written reminder (day 7-15)
Send a written reminder with a deadline for payment.
Step 3: Formal notice (day 15-30)
Send a formal notice by registered letter giving 15 days to pay. Mention the termination clause of the lease.
Step 4: Justice of the Peace (after 30 days)
If the tenant does not pay after the formal notice, refer the matter to the Justice of the Peace. The judge can order payment, set up a payment plan, or terminate the lease.
The average procedure takes 2 to 6 months. The rental deposit covers part of the losses. For creating a lease with proper protection clauses, use our online lease generator. For more information, consult our guide on rental insurance in Belgium.