People who die alone have become a risk factor for landlords, because the number of such "lonely" deaths has surged due to changes in demographics and the household structure in recent years.
According to findings released by researcher Kim Se-joong at the Korea Insurance Research Institute, the number of lonely deaths nearly doubled from 682 in 2011 to 1,245 in 2015. With the number of single households now accounting for 27.9% of the total, experts warned the figure would also rise this year, reported Korea Bizwire.
The Institute's report urges South Korea to take note of Japan’s experience in dealing with the growing risks of lonely deaths. Among the risks, residential property owners are left with a number of problems, including having to clean up after a tenant who has died, calls for lower rent, and difficulty finding new tenants.
In Japan, lonely death insurance plans cover remodelling expenses as well as the financial burden caused by a fall in rent as a result of the death of a tenant.