Rental deposit: a guarantee for the landlord, but a financial blow to the tenant. In reality, many people do not like to know their money tied to an account blocked for years or they simply can not afford it.
In these cases, the rental deposit insurance is a viable alternative. Or in situations where the rental deposit of the new apartment must be paid before the security deposit of the old house has been unblocked. comparis.ch quickly summarized everything you need to know about the rental deposit insurance.
Here’s how it works
The rental security, or guarantee, is stipulated with insurance companies and banks. The tenant pays a registration fee and an annual premium. On the other hand, the insurance assumes the guarantee for the amount of the rental deposit against the landlord. However, a rental security insurance cannot be confused with liability insurance. This means that the payments, which insurance is assumed for the tenant in the event of a claim, must be repaid.
Advantages and disadvantages of rental security insurance
The most compelling reason to conclude this type of insurance relationship is the lack of liquidity, as shown by a survey by comparis.ch. It generally stipulates a rental guarantee insurance who do not have the money to pay a deposit or who at that moment needs money for other purposes. But there are also other reasons to choose a rental guarantee insurance, just as there are negative aspects to take into account.
Benefits of rental security insurance
No money should be invested to deposit the rental deposit.
Money is available for other purposes or can be set aside as savings.
If the security deposit for the old apartment is released late, the additional charge that may represent the deposit for the new apartment can be mitigated with a rental guarantee insurance.
Disadvantages of rental security insurance
Premiums and administrative costs can amount to some thousands of francs over the years.
Prizes are not reimbursed.
Any claims recorded on the return of the apartment are covered by the insurance only temporarily and must then be repaid.
Insurance premiums are different
The insurance premiums and costs of insurance differ considerably between themselves. Annual premiums generally amount to five percent of the security sum, while entry premiums, administrative costs in the event of a claim and the maximum amount of covered security vary from one company to another. In any case, it is advisable to collect different offers and calculate the individual items on the basis of the cautionary sum, before choosing which bidder to apply.
Attention, however: not all tenants accept rental deposit insurance in place of the classic security deposit. Many also accept only certain insurance companies. It is therefore advisable to ask the administration for more details.
So when is the rental deposit insurance convenient?
In short, a rental deposit insurance is interesting for the tenant who
he prefers not to have his money deposited in a blocked account;
he wants to use his money in another way or does not have enough liquid;
or await the refund of the rental deposit of the old apartment and can not afford to finance another security deposit.
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