Security Deposit Insurance Comparison 2024

The best security deposit insurance is the insurance which replaces the security deposit on your rental home at the lowest possible cost.

The interactive security deposit comparison on moneyland.ch makes it easy to find out which security deposit insurance is cheapest for your rental home based on the rent and the time of year at which your home rental contract begins.

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The security deposit insurance comparison on moneyland.ch is the leading Swiss comparison of security deposit insurance.

It is also the only interactive security deposit comparison which accurately accounts for all possible costs. The comparison accounts for the flat premiums charged by some security deposit insurance providers for the first year of insurance. This is important because depending on what time of year you begin renting your home, you may pay a high flat premium for just a few months of insurance coverage.

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Security deposit insurance is an insurance offered by Swiss insurance companies which replaces the security deposit you would normally have to put down for a rental home. Swiss home rental contracts typically require you to place the equivalent of 2 or even 3 monthly rents into a security deposit account. A security deposit insurance policy replaces the security deposit by guaranteeing rental payments up to the equivalent of the required security deposit.

Important: Security deposit insurance primarily protects the property owner whom you rent from in that it compensates them for missed rental payments or damages which would normally be covered by your security deposit. However, it does not protect you financially as you must repay the insurance company for any benefits which it pays out to the property owner.

The benefit for you as a renter is that you do not need to put down a security deposit. This can be beneficial if you do not have the money required for a security deposit, for example.

The premium for security deposit insurance is typically between 4 and 5 percent per year. In addition to that, you pay a stamp duty equal to 5% of the premium.

If you take out security deposit insurance with a 5000-franc sum insured and a premium equivalent to 5% of the sum insured, you would pay a premium of 250 francs per year. With the stamp tax added, the total cost would be 262.50 francs per year.

Other fees and charges may apply in addition to premiums and stamp duties.

The total cost of Swiss security deposit insurance is made up of these cost components:

• Premiums: Insurance premiums range between 4 and 5 percent of the sum insured each year, depending on the insurance.
• Stamp duties: A stamp duty equal to 5% of the insurance premium is added to each insurance premium.
• Administrative costs. Some insurance providers charge additional administrative fees every year. These generally range between 20 and 25 francs per year.
• Flat premiums: Some insurance providers charge a flat fee for the first calendar year in which you take out the insurance. With some insurance providers, you have to pay the full flat premium for the first year even if you only get the insurance towards the end of the year.
• Late-payment fees: The penalty fees charged when you receive late-payment reminders may range between 25 and 50 francs per reminder.
• If the property owner ever has to claim insurance benefits, you may be charged additional fees (100 francs, for example) in addition to repayments.

The security deposit insurance comparison on moneyland.ch accounts for all relevant fees for the first year and subsequent years. It also accounts for coverage-based premiums, flat premiums, administrative fees, and stamp duties.

Some security deposit insurance offers charge a flat premium for the first calendar year. Some insurance providers require you to pay the full annual flat premium even if your contract only begins at the end of the year (in November or December, for example). That is a disadvantage if you move into a rental home in the late months of a given calendar year.

The comparison on moneyland.ch accounts for possible first-year flat premiums based on the date from which insurance coverage will apply.

Yes. A stamp duty is levied on insurance premiums. This tax is equal to 5% of each security deposit insurance premium, and applies to all offers. The security deposit premium comparison accounts for stamp duties.

No. Swiss security deposit insurance offers generally do not have special discounts for families.

Some insurance providers give you a discount if you have personal liability insurance. Some insurance providers give you a multiple-policy discount if you get personal liability insurance from them as well.

A security deposit account is an escrow account by which a bank holds assets in trust on behalf of a renter and a property owner. The money remains in trust throughout the full property rental term, and cannot be accessed by either the renter or the property owner during that time.

The interest rates of security deposit accounts are typically similar or identical to those of savings accounts. Due to the current low interest environment, many Swiss security deposit accounts have interest rates of 0% per annum. Security deposit accounts typically do not have annual account fees. You can find more information about security deposit accounts here.

When you take out security deposit insurance, you do not need to place a security deposit in a security deposit account. However, you pay an insurance premium every year.

If you do not have the money required for a security deposit on a property rental, security deposit insurance provides an alternative. As long as the property owner accepts security deposit insurance in place of a security deposit account, you can rent the property even if you do not have the money for the deposit.

The advantage for property owners is that the administrative work associated with opening a security deposit account is (ideally) lower. In the event of missed rental payments or damages, property owners can claim benefits directly from the insurance.

The disadvantage of security deposit insurance is its cost. Security deposit insurance costs almost as much as personal loans.

If you have money which you can use to pay the deposit into a security deposit account, doing this makes more financial sense than getting security deposit insurance.

Requiring or accepting security deposit insurance in place of a security deposit account can make financial sense for property owners because it reduces administration.

For renters, the relatively high cost or rental deposit insurance makes using them disadvantageous compared to paying down security deposits in cash. Renters only benefit from security deposit insurance if they could not otherwise pay down a security deposit.

Security deposit insurance offers generally have limits on the maximum sum you can insure. The maximum sum insured is generally between 10,000 and 20,000 francs.

In Switzerland, property owners cannot legally require more than three monthly rents as a security deposit. This legal limitation applies to all home rental contracts, and therefore to all security deposit insurance offers. Example: If you rent an apartment for 1500 francs per month, the security deposit which the property owner requires cannot exceed 4500 francs.

The term security deposit insurance can be somewhat misleading. It is not insurance in the true sense of the term and it does not cover your liability for rental payments. It is a guarantee for property owners which ensures that they are compensated for missed rental payments and damages to their property (when these are not covered by the personal liability insurance). You as a renter are not insured at all.

Security deposit insurance covers legitimate claims by property owners against you as a renter. However, insurance benefits paid to property owners are simply advances which you as the renter then owe to the insurance company.

Many security deposit insurance policies have minimum contract terms of one year. There are some security deposit insurance offers which do not have a minimum contract term per se, but these require you to pay the annual premium for the first year in full.

Notice periods vary between insurance offers. Some security deposit insurance offers do not require you to give notice ahead of termination. Other require you to give notice one month or three months in advance.

In theory migrating from one security deposit insurance to another is relatively simple. You can simply apply for a cheaper security deposit insurance offer and, once approved, give notice on your existing insurance policy. However, you have to consult with the property owner or manager first and get their approval. This makes the process more time-consuming.

You should also pay attention to the notice requirements of your existing insurance policy. Make sure to give notice on time, and make sure that your new security deposit insurance only begins when your existing insurance expires.

You are generally required to pay the insurance premium for at least one year in advance. Because of this, your new insurance should only begin after the prepaid term of your existing security deposit insurance ends.

The comparison lets you compare security deposit insurance offers from these insurance providers: AXA, Firstcaution, goCaution, Helvetia, SwissCaution, Zurich.