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Old 30.09.2006, 17:22
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Rental Deposit Insurance (Mietzins-Depot?)

First, to the mods, after debating with myself, I decided that this was more of an insurance related question (even though it's related to apartments) hence my choice of where to post - but please do move if you deem it necessary/appropriate.

So we are about to do the whole rental thing (my husband has been looking at places today and we are going to do the application for one on Monday).

I have seen adverts for a service that is essentially a kind of insurance so you don't have to fork over so much cash (a good thing for us - given that we are paying for our own move, have temp housing costs, and our house in the UK is not sold yet).

Quote:
you pay only a Fr. 200.- starting fee, then an annual payment of 4% of the guaranteed amount starting from the 2nd year.
No deposit necessary!
Basic principle:
The tenant has a Guarantee Contract with SwissCaution which means that SwissCaution will act as guarantor for the full amount of the deposit required by the landlord.
I just wondered if anyone had any experience with this kind of thing. For example, wondering if all landlords would accept this, or if there are any hidden downsides that we as newbies wouldn't see/figure out (other than the obvious one of if you make the deposit, you in theory would get it all back, whereas with this, obivously, it is money that's just gone - similare to many types of insurance premium).

Thanks!
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Old 30.09.2006, 19:50
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Re: Rental Deposit Insurance (Mietzins-Depot?)

Quote:
First, to the mods, after debating with myself, I decided that this was more of an insurance related question (even though it's related to apartments) hence my choice of where to post - but please do move if you deem it necessary/appropriate.
Yes, now you see the problem we have too. No matter what structure is defined - there will always be such questions. When moving threads we decided that insurance is such a popular subject in Switzerand that the insurance forum should always get the messages even if about things like apartments or cars.

Anyway - onto your question. Go for it. If your landlord will allow this then you should consider it. Some won't. Why? Landlords who have your money have an advantage in any dispute. With something like Swiss-caution I think the landlords have more a battle to get at your money if there's an argument.

Calculate the cost in terms of lost interest. If you tied up the money for a few years and got 2% on it, how much income would you miss out on? If the deposit is 10k, maybe that's a cost of 200 per year.

I use a different company, but different idea. I end up paying around 5% per year. They don't tell me how it is worked out - you tell them which country you are from and what kind of permit you have and they obviously decide whether you are a good foreigner or a bad foreigner and charge you accordingly.
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Old 30.09.2006, 20:28
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Re: Rental Deposit Insurance (Mietzins-Depot?)

Quote:
Yes, now you see the problem we have too. No matter what structure is defined - there will always be such questions.
Still love the new structure though - much easier than before (for me anyway).

Thanks for the info on this. I think we will try to do it. The flat is through a management company, I think, not a private individual, so hopefully that will make things easier. If we do go through the process, I'll post an update for anyone looking for this kind of info in the future.
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Old 30.09.2006, 22:14
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Re: Rental Deposit Insurance (Mietzins-Depot?)

I used SwissCaution for my first office space. The landlord (an absolute drain on my energy and patience) owned the building and was happy to accept SwissCaution. The landlord of my current office space, however would not and he represents an agency... So its worthwhile checking with your landlord first.

Secondly, be aware that SwissCaution bill you per Calender year. In other words, expect another bill for a years insurance in your letterbox by February even though you only just paid for a year starting in October...

I have to say that I actually was not so impressed with the service I received from SwissCaution. Their helpline charges you a ridiculous amount, the staff spoke mostly French and no English or German so communication was difficult. Although all the paperwork arrived in English. But the idea of the insurance instead of paying a deposit certainly made a difference to my cashflow...
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Old 30.09.2006, 22:37
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Re: Rental Deposit Insurance (Mietzins-Depot?)

Lynn - thanks for sharing your experiences - it's invaluable to hear from others who have used a company. My husband speaks and reads French so it is good to know that he would need to be the one to handle any phone calls. I think I will do some internet searches to see if there are any other companies doing this so that we could compare prices and services.

Thanks!
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Old 06.10.2006, 16:50
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Re: Rental Deposit Insurance (Mietzins-Depot?)

Hi Lynn

Look third part liability insurance will do. It costs CHF ~150.- by each insurance company (yearly premium). bye.
Arek.
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Old 07.10.2006, 09:45
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Re: Rental Deposit Insurance (Mietzins-Depot?)

Quote:
Look third part liability insurance will do. It costs CHF ~150.- by each insurance company (yearly premium). bye.
This type of insurance will not suffice in such a situation. If you simply don't clean your flat, or drill holes in the wall and don't do anything about it then the normal third party liability insurance won't suffice. It can also be cancelled at any time while you are living in the place.

For this reason I don't think any landlord would ever allow you to forgo a security deposit (or equivalent deposit insurance) simply because you have a general third party liability insurance.

Last edited by mark; 07.10.2006 at 10:55. Reason: changed "be" to "not" :-)
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Old 07.10.2006, 12:55
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Re: Rental Deposit Insurance (Mietzins-Depot?)

Quote:
This type of insurance will not suffice in such a situation. If you simply don't clean your flat....
Yes, that's true...for 100%
Quote:
...or drill holes in the wall and don't do anything about it then the normal third party liability insurance won't suffice.
Yes, you are right.
Quote:
It can also be cancelled at any time while you are living in the place.
No. It can't. It cannot be cancelled at any time you are living in. That's not true. It had never happened in my all life. For cancelling a contract you need reason. And both are obliged to have one or more of them.
Quote:
For this reason I don't think any landlord would ever allow you to forgo a security deposit (or equivalent deposit insurance) simply because you have a general third party liability insurance.
That's one another couple of shoes...That's other thing because leaving deposit is very normal here in that situation in Switzerland. And when you have an insurance 'third part liability' and you leave the flat after few years you will get 100% of the deposit. The insurance want not pay only when flat is enormously messy or damaged. And this things happen.Arek.
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Old 07.10.2006, 13:02
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Re: Rental Deposit Insurance (Mietzins-Depot?)

Quote:
No. It can't. It cannot be cancelled at any time you are living in. That's not true. It had never happened in my all life. For cancelling a contract you need reason. And both are obliged to have one or more of them.
I cancelled my third party liability insurance. I still live in the same place. It has no bearing whatsoever on anything to do with any contracts I have with my landlord. I do however have deposit insurance, and I can't cancel that - it's a totally different insurance policy. When I referring to 3rd party liability insurance - I said that could be cancelled at any time, I was never referring to deposit insurance.
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Old 07.10.2006, 13:24
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Re: Rental Deposit Insurance (Mietzins-Depot?)

Quote:
This type of insurance will not suffice in such a situation. If you simply don't clean your flat, (…)
Yes, Mark. You are right.
J or drill holes in the wall and don't do anything about it then the normal third party liability insurance won't suffice. Yes, Mark. You are right. That is true. J
Quote:
It can also be cancelled at any time while you are living in the place.
No. It can’t be cancelled.

It cannot be cancelled at any time. An insurance contract can be cancelled as each other contract when a reason is there. And that is by law for both. For the company and for the person being insured. All the time.

Quote:
For this reason I don't think any landlord would ever allow you to forgo a security deposit (or equivalent deposit insurance) simply because you have a general third party liability insurance.
Deposit. That’s one another matter. In Switerland is verycommon to pay deposit in such situation. And this kind of insurance ‘third part liability’ covers exactly these things. If flat will be not enormously messy and damaged everybody gets his whole deposit back and insurance third part liability does his good duty.


J Arek Kasprowski.
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Old 07.10.2006, 14:41
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Re: Rental Deposit Insurance (Mietzins-Depot?)

Quote:
No. It can’t be cancelled.
It cannot be cancelled at any time. An insurance contract can be cancelled as each other contract when a reason is there. And that is by law for both. For the company and for the person being insured. All the time.
I get the feeling that these messages are repeating themselves. Your last response looks almost exactly the one before - almost word for word.

So instead I'm just going to contest the point that 3rd party liability can be cancelled while you are living in a flat. I repeat again - I did this, so it is not impossible. It's not impossible because it is not a compulsory insurance in either Switzerland, or in my rental contract.

An insurance policy CAN be cancelled if it is within the terms of the contract (appropriate notice period etc). I simply phoned the company prior to it running out and informed them that I didn't want it anymore. That was the end of the matter. You say it must have a reason to be cancelled - yes there was - I was tired of paying for it and didn't want it anymore.

So I assert again - 3rd party liability insurance can be (and in my case HAS been) cancelled while living in a flat. If it were impossible - how could I have done it, and what would be the legal basis for forcing me to have it?
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Old 07.10.2006, 14:44
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Re: Rental Deposit Insurance (Mietzins-Depot?)

The point of this thread is however not third party insurance. For those who don't have the finances to put down a deposit can buy a special insurance for that purpose... Which is what was being discussed

Some rental agreements do require you to have third party insurance, and should you not you are in violation of your contract. I don't believe however that this is greatly enforced... But I could be wrong. Maybe Richard knows??
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Old 05.07.2007, 21:28
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Re: Rental Deposit Insurance (Mietzins-Depot?)

Hi,

This is slightly off-topic but reading about swisscaution made me remember that I haven't paid my deposit after living here for four months (I looked at swisscaution before moving in).

I'm tempted to keep quiet until asked, but I'm worried this will backfire at some point... does anyone have any experience of this?

thanks,
Andrew.
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Old 06.07.2007, 15:07
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Re: Rental Deposit Insurance (Mietzins-Depot?)

"When in rome do like the romans". Let say something happens in your apt.(Whatever this might be)The swiss are very RULE ORIENTED, so for you own sake, follow them. And you will be HAPPY!
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