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.

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.

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.

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.

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.”

Click here(opens in new tab) to see a sample surety bond certificate.

Yes, your landlord has the right to ask you to place a security deposit with a bank.

You will be refunded the premium you have paid as soon as the insurer has received the corresponding confirmation from your landlord.

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.

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.

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.

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.