Why a rental deposit guarantee?

If you rent a new apartment, you usually have to deposit two to three months’ rent in a bank account. This money is then blocked and only serves as security for the landlord.

However, there is another way: with a rental deposit guarantee, you remain financially flexible. It is not a traditional insurance policy but a guarantee. You pay an annual premium, and in return the insurance company undertakes to pay the landlord in the event of legitimate claims: for example, if you cause damage or cannot make a monthly rental payment. The insurance company will basically advance the money and ask you to return it later.

Requirements

Most rental deposit providers require the tenant to hold personal liability insurance.

Can I convert my bank deposit into a rental deposit guarantee?

Yes. Go to your landlord and have the bank deposit paid back. The rental deposit guarantee offers him the same security.

Advantages of a rental deposit guarantee

• Favorable premiums
• Financial flexibility – your money is not «blocked»
• The same level of security as a bank deposit
• Can be canceled anytime 

* For a rental deposit of up to CHF 2,000 and simultaneous liability insurance with AXA, the annual insurance premium payable to the provider AXA is only CHF 75.60. If personal liability insurance is held with AXA, it is CHF 84.00 annually.