Insure your rental deposit – this is how you solve the deposit problem!

It is well known that the rental deposit is a problem for many people in Switzerland. The deposit, which can amount to up to three months’ rent, locks away a large portion of one’s savings. As a result, this amount is not freely available to tenants, and in the event of financial difficulties, the necessary cash reserve is missing.

Furthermore, it is particularly difficult for young people to come up with the required deposit amount in the first place. Many young adults reach an age where they no longer want to constantly ask their parents for financial support. This can quickly erode self-confidence. Sometimes even the parents do not have the money to help their child with the rental deposit.

This problem was recognised and a simple yet ingenious solution was developed. An alternative to the traditional bank deposit that allows you to move into an apartment even if you do not have the money for the rental deposit readily available.

The alternative to a rental deposit with a bank deposit is rental deposit insurance. The ingenious part: with rental deposit insurance, you do not need to put up your own money for the deposit, as this part is taken over or guaranteed by a third party. In this case, that third party is goCaution.

Rental deposit insurance enables you to move into an apartment quickly without having to raise the required deposit yourself. This is particularly interesting if you want to keep your deposit money available for your own use. For example, you could keep the money as an emergency reserve. After all, there is nothing worse than having money on paper but having it locked away in a restricted account when you need it most. Another possibility is if you simply do not have the money for the rental deposit at all. In that case, goCaution can help.

You avoid having to pay in a rental deposit by having goCaution act as guarantor vis-à-vis the landlord in return for payment of a premium. Your landlord is guaranteed the security in the amount of the agreed rental deposit through a surety certificate. This gives your landlord the assurance that goCaution will pay any subsequent claims. goCaution covers all claims that fall within the legal framework.

To make the sign-up process as simple and quick as possible, we have streamlined it considerably. There are only three steps to follow:

Should the landlord make claims against you after your move-out, goCaution is obliged to settle these claims. The prerequisite is that you have given us your consent. If this occurs, you should always bear in mind that you must reimburse us for the amounts we have paid to your landlord.

If the landlord makes no further claims after your move-out, the surety must be cancelled so that you are released from all obligations. To this end, the landlord must return the surety certificate to goCaution by post. Upon receipt of the certificate, you are released from all obligations. From the second year of the contract, annual premiums for months not yet commenced are refunded proportionally by goCaution.

If you opt for rental deposit insurance from goCaution, you will enjoy several advantages: