Rental deposit insurance
Instead of locking three months’ gross rent in a blocked account, you provide a deposit guarantee.
Why this matters
When you move, everything comes at once: the removal firm, new furniture, perhaps double rent – and the new property management additionally demands a deposit while the old one is still blocked. If you don’t have that sum readily available, you come under pressure at exactly the wrong moment. This is where rental deposit insurance steps in as guarantor: it provides the property management with the required security without you having to deposit any money.
For residential property, the deposit may by law not exceed three months’ rent – whether a blocked deposit account or an insurance solution is used is agreed with the property management. The insurance is intended above all for young tenants, families in the middle of a move and anyone with tight liquidity. Important to know: the annual premium is a real cost and is not refunded – in the long run, choosing the classic blocked deposit account usually works out cheaper.
What you get out of it
Up to three months' rent stays in your account instead of in a blocked deposit account.
Especially when moving, this noticeably eases the strain on your household budget.
Taken out in no time — the confirmation goes straight to the property management.
What we take care of for you
- Comparison of rental deposit insurers by annual premium
- Handling everything with the property management, including confirmation
- Advice on when returning to a blocked deposit account pays off
- Cancelling the old solution when you move out
The advice is free for you — we are remunerated by the insurance companies through brokerage commissions and will disclose these on request.
Tips from our consultations
What we tell our clients time and again – free of charge, even before the first meeting.
Deposit insurance eases the moving phase but costs money year after year in the long run. Once your finances have recovered, switching back to a blocked deposit account pays off. That can be arranged with the property management at any time.
If the insurer pays the property management a justified claim – for damage in the flat, say – it then recovers the amount from you. The policy protects your liquidity, not against the costs themselves. This detail is often skimmed over at signing.
Whether claims are raised when you move out is usually decided by the handover report. Record defects in writing and with photos when you move in, and report hidden defects promptly afterwards. That way it never even gets to the point where the deposit is drawn on.
If the lease for a flat demands more than three months’ rent, that is not permissible – raise it. Also check whether a deposit is demanded at all; some property managements do without one. And after moving out, follow up to make sure an old blocked deposit account is actually released.
