Real estateInsurance For Landlords To Compensate For Lonely Deaths, Etc.

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The Japan Rental Housing Management Association has recently launched a “Landlord Cost And Profit Insurance (Rental Management Support) Plan” for members of the association in cooperation with Tokyo Marine Nichidō Fire Insurance Co., Ltd.

In the event of an unfortunate incident such as a lonely death, suicide, or death related to a crime (e.g. murder) in rental housing (which are collectively called “jikobukken” in Japanese [事故物件]), this will cover the rent loss and restoration costs incurred by the insured. The maximum rent loss payment period is 12 months. According to the “Cost Compensation Clause For Resident Loss,” litigation costs for vacant buildings, fees to clear remains, etc. will be compensated.

There are three amounts of compensation for rent loss and various expenses: ¥1 million, ¥2 million, and ¥3 million. If the amount of compensation is ¥1 million, the annual insurance premium per unit will be ¥2,520 (as of the end of January). The amount of compensation for a tenant whose whereabouts are unknown is ¥1,000,000.

This is good news for landlords worried about their property becoming stigmatized. It lessens the risk, particularly for tenants who are more advanced in age. More information about jikobukken can be found here:

Murder! Yakuza! Cults! What Are Stigmatized Properties?