Russia-based vertical Yandex.Rent has launched its own insurance scheme to compensate landlords for damage from bad renters, the platform said in a press release. The financial protection scheme guarantees payment to owners of rental properties in cases where the tenant suddenly moves out or does not pay on time, or if the property is damaged.
Previously, in order to file insurance claims and receive compensation, landlords had to apply directly to the insurance company, with some claims taking up to a month to be considered. Yandex.Rent says its financial protection scheme has noticeably accelerated and simplified the process. Now, in 90 percent of cases owners can receive compensation within a week, with Yandex.Rent taking care of all communications with the insurer.
The insurance is free for owners. The landlord must send a claim with photos of the damage or a description of the rental issue to the customer support team, which will complete the necessary paperwork, calculate the amount of compensation within the insurance limit and credit it to the owner’s payment card. Physical damage to the property is covered to the equivalent of one month’s rent taken out of the tenant’s deposit.
“We have replaced the traditional deposit with an insurance premium to offer landlords more protection, said Ilya Tikhomirov, head of Yandex.Rent. Financial protection is a new development stage for the product, allowing property owners to receive money faster in the event of unforeseen circumstances, without having to wait for the completion of all stages of a claim filed with an insurance company.
In response to the announcement, some Yandex.Rent users commented that the new arrangement could raise the overall cost of rent, making it less attractive to customers while increasing the tax base for landlords.
Yandex.Rent is part of Yandex.Verticals, a classified division of Russia-based IT giant Yandex. Its parent company Yandex N.V., registered in the Netherlands, is preparing to sell off its Russia-based assets.