Unpaid Rent Insurance in France (GLI): Complete Guide 2026

What GLI covers — and what it doesn't

Standard coverage

• Unpaid rent — compensation from the 1st or 2nd missed payment, for the entire duration of court proceedings (sometimes up to 36 months), capped at the contracted monthly maximum (often 100% of rent incl. charges, up to €3,000–4,000/month depending on the policy).
• Legal costs — bailiff fees, solicitor fees, court costs through to eviction.
• Tenant damage — restoration costs beyond the security deposit, typically capped at €7,500–30,000.
• Vacancy (optional add-on) — compensation for months with no tenant after departure, subject to conditions.

Common exclusions

• Arrears arising before the policy was taken out, or during the waiting period (often 3 months).
• Tenants whose effort rate exceeded 33% at the time of subscription — the insurer may void the policy if the tenant did not qualify.
• Repeated partial payments (some policies require a complete non-payment to trigger the guarantee).

Tenant eligibility criteria

Insurers require the tenant profile to match the policy conditions at subscription:

1. 1. Effort rate ≤ 33% — rent (incl. charges) does not exceed 33% of the tenant's net monthly income (up to 40% for high earners on some policies).
2. 2. Justifiable, stable income — permanent contract (CDI) outside probation, civil servant, retiree, or self-employed with 2 years of accounts. Fixed-term contract (CDD) accepted by some insurers with ≥8 months remaining.
3. 3. No recent payment incidents — no FICP entry, no known rental arrears history.
4. 4. Primary residential use — GLI covers only principal-residence leases, not seasonal, holiday, or professional lettings.

Cost and tax deductibility

GLI premiums typically run 2.5%–4% of annual rent incl. charges, depending on the insurer, the coverage level, and the tenant profile. On a €900/month property (€10,800/year), that is €270–432 per year.

Tax deduction: the premium is fully deductible under the régime réel (Form 2044, insurance premiums line), reducing taxable rental income directly. Under the micro-foncier regime (30% flat allowance), it is not separately deductible. See our Form 2044 rental income tax guide.

GLI vs Visale (free state guarantee)

Visale (Action Logement) is a free state-backed guarantee covering unpaid rent for tenants under 30 or entering employment. It costs nothing for either party, but its scope is narrower than GLI: no standard damage coverage, a rent ceiling applies, and the landlord must reclaim compensation from Action Logement (slower than a private insurer). Visale and GLI are mutually exclusive. For young or early-career tenants, Visale is worth considering before a paid GLI policy.