HUG 전세보증보험 가입 Find out when to sign up for HUG Chonse Guarantee Insurance

In Korea, there is a special system called jeonse, which is not found in other countries. If used well, it has the advantage of costing less housing than monthly rent. However, there were many cases of exploiting the system because there were so many loopholes. Several measures have been taken to prevent this, but they have not been very effective.

​HUG 전세보증보험 가입

As a result, the amount of money given to the tenant by the Jeonse Guarantee Insurance is 2 trillion won. And the recovery rate was only 17%. As a result, the conditions for joining the Jeonse Guarantee Insurance became more difficult.

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However, as the conditions for joining have become more difficult and difficult to join, the government is planning to announce the terms of new lease guarantee insurance. According to the article, there is not likely to be much change and the terms of joining are expected to ease.

HUG 전세보증보험 가입

 

HUG Chonsei Guarantee Insurance

Jeonse guarantee insurance is a system in which the corporation pays a deposit to the tenant on behalf of the landlord and the corporation claims the right to indemnify the landlord if the landlord does not return the lease deposit without a justifiable reason even after the lease contract is terminated.

Jeonse guarantee insurance is not available to anyone and must meet the terms of subscription.

Homes covered under warranty: Single, multi-family, multi-family, row, multi-family, multi-family housing, welfare housing for the elderly, residential officetel, apartment

Guarantee amount: KRW 700 million in the metropolitan area and KRW 500 million or less in other areas, the amount applied by the guarantee applicant within the guarantee limit.

The most basic conditions are to receive a notification of the move-in of the house and a fixed date.

 

Guarantee limit: House price × mortgage recognition ratio (90%) – Senior bonds, etc

For example, if the house price is 100 million won

– If the deposit is 95 million won, you cannot sign up (guaranteed limit of 90 million won)

– You can sign up for a deposit of 90 million won (guaranteed limit of 90 million won)

– If the deposit is KRW 40 million and the senior bond is KRW 55 million, it is not possible to join (the guarantee limit of KRW 35 million, the housing price of senior bond exceeds 60%)

Changes will be made in this area. Last year, the government strengthened the application ratio of declared values from 150 percent to 140 percent, and adjusted the company-wide price ratio to 90 percent or less of the housing price, allowing people to subscribe only when the deposit is less than 126 percent of the declared value. As for the calculation method, non-apartments such as row, multi-family and multi-family houses were given the first priority based on declared values, while the appraisal method was put to the lower priority. This has made it difficult for people to subscribe to the insurance.

Perhaps a change in the way housing prices are calculated will be announced.

Next, if you look at the conditions of joining the lease guarantee insurance

There must be no auction, seizure, provisional disposition, or provisional registration on the register.

The land and buildings of the house must be owned by the landlord.

There should be no next-generation move-in details as of the date of application for warranty (excluding single, multi-family, and multi-family houses)

The lease term must be at least one year.

It must be a contract through a real estate agent.

Timing of Jeonse Guarantee Insurance

You can’t apply for lease guarantee insurance at any time, and the time of subscription is set.

In the case of a new lease on a deposit basis contract: Before 1/2 of the lease on a deposit basis contract period has elapsed from the late date of payment of the balance in the lease on a deposit basis contract or the date of notification of move-in

In the case of a lease on a deposit basis contract for renewal: Before 1/2 of the lease on a deposit basis contract period has elapsed in the renewal lease on a deposit basis contract

Today, we looked into the terms and conditions of signing up for HUG Jeonse Guarantee Insurance. I hope that we can fill the loopholes of the good system of Jeonse so that tenants can live comfortably with Jeonse.