Rental guarantee insurance
The flexible alternative to a security deposit
Forget about expensive security deposits – use our easy alternative instead. Rental guarantee insurance gives you financial flexibility while offering your landlord financial security.
What is Swisscom sure?
Swisscom sure provides flexible insurance tailored to your wants and needs.
Rental guarantee insurance is offered in collaboration with our partner, AXA Insurance Ltd.
What does rental guarantee insurance cover?
Rental guarantee insurance is a surety that gives you financial flexibility, while at the same time offering your landlord the same level of security as with a security deposit. You pay a monthly premium for this surety.
Rental guarantee insurance explained: If you damage your rental apartment or fail to pay your rent, this insurance will reimburse your landlord. You will then have to repay this amount later.
All advantages at a glance
Greater financial freedom
Use your money for what's important – new furnishings for your place or other things you really want.
Landlords are happy
Landlords appreciate rental guarantee insurance because it provides them with immediate security.
Monthly payments
Pay it monthly together with your Swisscom bill – no annual payments or installment fee.
Short notice period
Cancel when you wish to. No lengthy contract terms.
Free advisory service
Our team is ready to help with any questions or issues you may have - free of charge.
Rental guarantee insurance
General Insurance Conditions
Here's how it works
Make your dream apartment come true
Marcel and Aurora have just been approved for an apartment. But the security deposit amounts to three months’ rent. This is too much for them.
The couple would rather spend their money on a car and new furniture.
So Marcel and Aurora decide to take out rental guarantee insurance through Swisscom sure.
Their landlord receives a surety bond certificate. He appreciates how little paperwork is involved.
Marcel and Aurora can now keep their money. They can start this new phase of their life without any stress.
Any questions?
We will be happy to assist.
What is rental guarantee insurance?
With rental guarantee insurance you don’t have to place up to three months’ rent in a security deposit account to move into a new apartment.
Rental guarantee insurance stands surety for you as the tenant. And your landlord receives a surety bond that is equivalent to a security deposit. All you pay is a monthly premium that is based on the amount of the security deposit stated in your rental agreement.
Security deposit or rental guarantee insurance: What’s the difference?
Security deposit:
You have no access to your money. Your money is locked away in a bank account for the entire life of the lease.
Security: A security deposit in an bank account offers the same security as rental guarantee insurance.
Cost: Depending on your bank, you may have to pay account opening and account closing fees. You could also be missing out on earning interest because you are not able to invest your money how you want.
Rental guarantee insurance:
Your money is not tied up in a bank account. You do not need to deposit any money.
Security: Rental guarantee insurance provides the same security as a security deposit in an escrow account.
Cost: 4% of the security deposit amount plus federal stamp duty.
Are my premiums used to pay off the security deposit?
No, the premiums you pay as a tenant are used to pay for the surety bond, which is a guarantee that the insurance will pay for damage to the apartment or overdue back rent owed up to the defined amount during the term of your lease. However, this is only an advance payment by the insurance. You will be required to repay this amount.
What are the requirements for taking out rental guarantee insurance?
You must be at least 18 years old to purchase rental guarantee insurance. We recommend that in addition to rental guarantee insurance, you take out personal liability insurance as well because it covers some of the damages caused as a tenant. For example, if you drop a perfume bottle in the bathroom sink and it cracks the sink.
Don’t have personal liability insurance? Find out more about what we can offer you here.
What data does Swisscom use, how and for what purpose?
You will find general information on data processing by Swisscom as well as information on additional data processing in insurance brokerage at www.swisscom.ch/privacy. You can find out how the insurance company processes your data in the privacy policy or read the insurance terms and conditions of the insurance company in question.
How is the premium for rental guarantee insurance calculated?
The premium is based on the amount of the security deposit you are required to make and is set at 4% of the rental guarantee amount. You must pay the federal stamp duty as well. Your premium will be included with your monthly Swisscom bill. Click here to calculate how much your premium will be.
Is rental guarantee insurance worth it?
Rental guarantee insurance is just as good for tenants as it is for landlords:
- It is perfect for tenants who need access to their money rather than having it tied up in a security deposit account.
- Landlords appreciate it because since they have a surety bond in hand, they know they will be paid for damages.
What advantages does rental guarantee insurance provide you as a tenant?
The advantages of rental guarantee insurance are:
- your savings remain at your disposition
- no liquidity crunches while moving
- Avoid the double burden of having to pay your new security deposit before you receive your current security deposit back
- A temporary solution: you can later replace your insurance with a security deposit as long as your landlord agrees.
- Are you in need of cash? You can replace your security deposit account with a rental guarantee policy if your landlord agrees.
Are there any disadvantages for your landlord if you take out rental guarantee insurance?
Rental guarantee insurance provides landlords with the same security as a security deposit in a bank. The landlord will receive the surety bond from the insurance three business days after the tenant purchases it.
If a claim is filed – if you fail to pay your rent or you damage the apartment, for instance – the insurance will pay your landlord any justified claims in advance. For these claims to be paid, the criteria listed in the GIC must be met and evidence is required to file the claim against the surety bond.
What happens if a claim is filed?
- The landlord submits a claim to the insurer for damages to the apartment or for unpaid rent.
- The insurance will pay out justified claims to the landlord. In order to make these payments, the insurer needs a copy of the "Beanspruchung der Bürgschaft" form (included with the surety bond certificate), signed by both the tenant and the landlord.
- You will then have to repay the insurer for this amount later.
What happens if the landlord and I can’t come to an agreement?
If the disagreement is about damages to the apartment, you should always report these to your personal liability insurance first. It will cover any justified liability claims and protects against unsubstantiated ones.
If your landlord has initiated debt collection proceedings, the rental guarantee insurance is required to pay the debts without your consent. This applies if the insurer receives
- ...a legally valid default summons or
- ...a legally binding court ruling.
You will find more detailed information about this in the GIC “Payment of the guarantee amount.”
What does the surety bond that the landlord receives look like?
Click here(opens in new tab) to see a sample surety bond certificate.
Can a landlord refuse to accept rental guarantee insurance?
Yes, your landlord has the right to ask you to place a security deposit with a bank.
What happens if the landlord refuses to accept the rental guarantee insurance and I have already paid the annual premium?
You will be refunded the premium you have paid as soon as the insurer has received the corresponding confirmation from your landlord.
Can I convert a security deposit at a bank into rental guarantee insurance?
Yes, that is possible: After you talk with your landlord, you can take out rental guarantee insurance at any time. After you take it out, your landlord will release your security deposit.
If in the meantime I have gathered enough money to put down the security deposit, can I cancel my rental guarantee insurance?
Yes, you can. If you wish to cancel your rental guarantee insurance during the term of your lease, you must notify the insurer and also have your landlord submit the “Beanspruchung der Bürgschaft” form (included with the surety bond certificate) to the insurer. This form must be signed by both you as the tenant and your landlord.
Is there a minimum term for rental guarantee insurance?
Rental guarantee insurance can be canceled monthly, so you enjoy flexibility and financial independence. When the lease ends or when you cancel your rental guarantee insurance.
What happens to my rental guarantee insurance if I move?
Your current rental guarantee insurance cannot simply be transferred to your new apartment. You cancel your rental guarantee insurance by filling out the “Beanspruchung der Bürgschaft” form together with your landlord, who will then send the form to the insurance company.
You must then take out a new rental guarantee policy for your new apartment.
Give us a call.
Unable to find the answer you were looking for or in need of additional help?
The Customer Care Team at Swisscom sure will be happy to help you.
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