·5 min·Ávalo team

What is a legal lease policy — and how is it different from insurance?

They sound the same but they're not. Here's what a legal lease policy covers, what it doesn't, and why in Mexico it isn't the same as rent insurance.

A legal policy is not insurance

A legal lease policy is a legal service that backs the owner against non-payment and disputes. It's not issued by an insurer — it's offered by a law firm. That changes what it can and cannot promise.

What it usually includes

  • Drafting of the lease contract.
  • Prospective tenant screening.
  • Collections and legal action in case of non-payment.
  • In some plans, coverage of unpaid rent while the case is resolved.

What it normally does not cover

  • Property damage (handled via deposit and contract).
  • Utilities used by the tenant (electricity, water, gas).