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.

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.

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.

Yes. Therefore, it is advisable to inform the landlord before taking out the 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.

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.