{"id":1196,"date":"2024-01-02T13:16:52","date_gmt":"2024-01-02T13:16:52","guid":{"rendered":"https:\/\/blog.relock.app\/rent-deposit-insurance-the-alternative-to-a-rent-deposit\/"},"modified":"2024-09-13T13:11:18","modified_gmt":"2024-09-13T13:11:18","slug":"rent-deposit-insurance-the-alternative-to-a-rent-deposit","status":"publish","type":"post","link":"https:\/\/blog.relock.app\/en\/rent-deposit-insurance-the-alternative-to-a-rent-deposit\/","title":{"rendered":"Rent deposit insurance: Benefits & how it works!"},"content":{"rendered":"\n

Are you planning to move within Switzerland or are you about to move into a new home? Then you have certainly already been confronted with the topic of “rental deposit”. In Switzerland, it is customary for tenants to pay a deposit before moving into an apartment, which serves as security for the landlord. However, paying the rental deposit can be a considerable financial burden for you as a tenant. That’s why we want to introduce you to an attractive alternative to the classic rental deposit: Rental deposit insurance. Find out exactly what it is and how it works in the following article!<\/strong><\/p>\n\n\n\n

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  1. Why choose “rent deposit insurance”?<\/a><\/strong><\/li>\n\n\n\n
  2. How rent deposit insurance works<\/a><\/strong><\/li>\n\n\n\n
  3. What to consider, when terminating the contract?<\/a><\/strong><\/li>\n\n\n\n
  4. When to get rent deposit insurance?<\/strong><\/a><\/li>\n<\/ol>\n\n\n\n

    1. Why choose “rent deposit insurance”?<\/strong><\/h2>\n\n\n\n

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    The deposit amount<\/strong><\/h4>\n\n\n\n

    One of the first questions that arises in a tenancy concerns the amount of<\/strong> the deposit<\/strong>. In Switzerland, landlords often demand a sum of several months’ rent<\/strong> as security in addition to the rent. This can be a big financial burden, especially as there are a lot of costs involved in moving anyway, such as costs for the removal company, new furniture, costs for re-registration, etc. You may also still be waiting for the rental deposit from your old apartment to be repaid.<\/p>\n\n\n\n

    This is where rental deposit insurance<\/strong> comes into play. Instead of depositing the deposit amount in a bank account, you can take out an insurance policy, which offers the same security but without actually tying up the money.<\/p>\n\n\n\n

    No administrative effort<\/strong><\/h4>\n\n\n\n

    Another advantage of rent deposit insurance over the classic rent deposit is the lower administrative costs<\/strong>. With a rent deposit, you have to open a separate account, pay in the deposit amount and keep it safe. In addition, administrative fees<\/strong> may be incurred, which can become significant over time.<\/p>\n\n\n\n

    With rental deposit insurance, the insurance company takes over the administrative costs. You do not need to open an additional account or transfer money.<\/p>\n\n\n\n

    Flexibility and termination of the tenancy<\/strong><\/h4>\n\n\n\n

    Another important point to consider is flexibility<\/strong>. When your tenancy ends, you must first have the money from the rent deposit released again. You are dependent on the favor of your landlord. If you’re unlucky, he or she will withhold the deposit and demand one or two (cosmetic) repairs. That costs time and nerves.<\/p>\n\n\n\n

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    With rental deposit insurance<\/a> <\/strong> the guarantee ends automatically at the end of the tenancy<\/strong>. This means that the insurance term corresponds to the rental period and you have no further obligations or administrative tasks to take care of afterwards. <\/p>\n<\/blockquote>\n\n\n\n

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    If you have found a new rental apartment and then need deposit insurance again for the new landlord, you can take out a new policy at any time.<\/p>\n\n\n\n

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    2. How rent deposit insurance works<\/strong><\/h2>\n\n\n\n