Kakao Pay Property Insurance announced on the 14th that it has launched a 'direct transaction rental insurance' for tenants who sign lease agreements directly with landlords without going through real estate agents. This is the first mobile-based insurance product that protects the risks of direct transaction contracts, which are in a blind spot for victims of rent fraud.
At the beginning of this year, Kakao Pay Property Insurance introduced the 'rental insurance (previously known as transfer rental insurance),' and with this new product, it has completed a comprehensive tenant protection system that encompasses both contracts with real estate agents and direct transaction contracts. The aim is to strengthen a life-close safety net for tenants, from fraud prevention to substantial compensation in case of damage.
Direct transaction rental insurance is available for real estate direct transaction contracts not only through offline transactions but also online platforms. Particularly, contracts made through representative direct transaction platforms such as 'carrot' and 'Peter Pan' are included in the coverage. Additionally, unlike existing guarantees for the return of rental deposits such as HUG, this product can be subscribed to before moving in, widely covering potential fraud that may occur before securing rights (including confirmation dates, registration of residence, and occupancy rights).
The coverage includes all fraud damages that may occur from the moment the contract is signed before moving in until the end of the contract. Specifically, this pertains to contracts with fake landlords who do not have ownership (e.g., falsification of identification or property registration), unauthorized representative contracts (e.g., falsification of powers of attorney or seal certificates), losses of deposits due to double contracts on the same dwelling, the emergence of prior claims resulting from the landlord executing a loan on the day of residence registration, and inability to move in due to occupancy by previous tenants, where full compensation for losses in deposits can be claimed.
The coverage target includes rental and lease deposits for apartments, multi-family dwellings, and residential officetels, with cover amounts ranging from a minimum of 10 million won to a maximum of 500 million won. The premium is paid only once upon subscription, maintaining coverage until the contract ends (for a maximum of three years), making it highly effective in securing deposits at a cost lower than brokerage fees, considering that direct transaction contracts are generally in high demand for monthly rent or small deposit leases.
Rental insurance not only provides compensation in the event of damage but also offers a free service to assess the risks of the contracted housing in advance. Users receive a 'my house report' analyzing information about the landlord, whether they are malicious landlords, appropriateness of deposits, real estate rights relationships, and risk factors, and if there are changes in the registration records during the contract period, such as a change of landlord or new establishment of a mortgage, they will be notified through a 'registration record change alert service.'
To subscribe, it is necessary to prepare a rental contract with a confirmed date and a transfer transaction statement, and subscriptions can be made up to six business days before the lease start date. Detailed coverage information and premiums for the product can be found on the Kakao Pay Property Insurance website.
Chang Young-keun, CEO of Kakao Pay Property Insurance, noted, "Young adults and newcomers to society lacking rental experience repeatedly suffer damages while finding homes," adding, "Direct transaction rental insurance embodies Kakao Pay Property Insurance's strong commitment to contributing to the creation of a safe living environment."