Information and frequently asked questions about security deposit insurance
Benefits for tenants
- The money saved by not paying the security deposit is at your free disposal.
- You have greater financial leeway for the move and for purchasing necessary items.
Benefits for landlords
- The landlord has less administrative work than in the case of a bank account.
- No delays in the payment of the security deposit: security for landlords and tenants from day one.
- Zurich will ensure prompt payment in the case of rent arrears, damage to the rented property and other claims under tenancy law.
What is security deposit insurance?
Security deposit insurance is a guarantee. The insurance company guarantees the deposit agreed in the rental contract with the landlord. This means that the insurance company reimburses justified claims by the landlord, but the tenant must pay these costs back to the insurance company later.
Who pays for security deposit insurance? The tenant or the landlord?
The tenant takes out the insurance and pays an annual premium for it. The amount of the premium depends on the amount of the deposit.
When does security deposit insurance make sense?
If the money for the security deposit cannot be raised. As a rule, three months' rent is required as a deposit. If, for example, the amount from the previous apartment has not yet been released when the deposit for the new apartment is due, then this can be a financial burden. The landlord receives the same level of security with the security deposit insurance as through an actual security deposit.
Can the landlord reject security deposit insurance?
Yes. Therefore, it is advisable to inform the landlord before taking out the insurance.
How long do you pay for security deposit insurance?
Zurich Security Deposit Insurance is taken out for three years and is then tacitly renewed for one year at a time. Insurance coverage begins on the date stated on the guarantee.
What does the insurance cover?
In the event of damage and claims arising from the tenancy, the insurance company settles the costs incurred but later claims them back from the insured person. The damage and claims mentioned include unpaid rent and utilities, damage to the apartment, and all other claims under tenancy law.
