Retain your financial flexibility when you move to a new home: Rental Guarantee Insurance from Helvetia replaces your deposit and ensures that your budget still allows you to buy new furniture.
If you as a tenant pay a security deposit into a conventional rental deposit account you can no longer access the money for the entire duration of the rental contract. As the security deposit is quite a large sum – usually several monthly rents – this can create a financial gap. You may then not have enough money for necessary purchases. With rental guarantee insurance you can avoid paying a deposit and use your savings flexibly in other ways.
Rental guarantee insurance is not insurance in the traditional sense – it is a guarantee from Helvetia in respect of the landlord. The landlord receives a guarantee certificate. If any payments have to be made to the landlord at the end of the rental period which you cannot make immediately, Helvetia will advance you the money. Helvetia will then request the money back from you at a later date.
The insurance is taken out for a year. It is then extended automatically for a further year. There is no period of notice. In the event that notice is given in the first insurance year, you will be billed for the entire annual premium. As of the second insurance year you will be reimbursed for the premium paid in advance on a pro rata basis. In order to terminate the rental guarantee insurance you need confirmation of termination by the landlord or property manager or the original certificate must be returned. The insurance cannot be cancelled without these documents.
Landlords take a very positive view of Rental Guarantee Insurance. If the landlord receives a guarantee certificate from the tenant instead of a receipt showing that a security deposit account has been opened he will have less administrative work. The landlord then also knows that your creditworthiness has been checked.
Rental guarantee insurance is suitable for all tenants who cannot or do not wish to do without a large deposit sum when signing a rental contract. In particular tenants who move frequently and who wish to retain their financial flexibility can benefit from a cashless security deposit.
The rental property must be located in Switzerland or the Principality of Liechtenstein.