Rental deposit insurance

Product type

Insurance product replacing a rental deposit account

Legal basis (deposit)

Art. 257e Swiss Code of Obligations (OR)

Insurance regulation

Federal Insurance Contract Act (VVG), Insurance Supervision Act (VAG)

Typical coverage

Up to three gross monthly rents (statutory framework for residential leases)

Pricing model

Annual premium as a percentage of the deposit amount

Target group

Tenants in Switzerland with residential or commercial leases

Geographic market

Switzerland

Rental deposit insurance is an insurance contract between the tenant and the insurer. Against payment of an annual premium the insurer issues a deposit guarantee to the landlord up to the agreed amount (typically up to three monthly rents). The tenant does not need to block any capital on a dedicated bank account.

In case of a claim — that is, legitimate landlord demands at the end of the tenancy — the insurer pays the landlord directly and may subsequently recover the amount from the tenant.

The premium is not a savings contribution and is not refunded if no claim occurs — similar to home contents or liability insurance premiums.

1. The tenant submits an application with details on the property, deposit amount and personal data.
2. The insurer performs a creditworthiness check (CRIF or equivalent).
3. If accepted, a certificate is issued, which the tenant provides to the landlord (electronically or on paper).
4. The tenant pays the annual premium and follow-up premiums during the term.
5. At the end of the lease, the certificate is either released after handover or claimed by the landlord in case of a legitimate demand.

• Not a deposit account: A rental deposit account (Art. 257e OR) is a bank account held in the tenant's name with actually blocked funds. With rental deposit insurance no capital is blocked; only an insurance policy is issued.
• Not a surety under Art. 492 ff. OR: A surety is a personal guarantee by a third party. Rental deposit insurance is an insurance product; the risk is carried by an insurance company.
• Not home contents insurance: Covers only the contractual deposit obligation toward the landlord, not damage to the property.
• Not liability insurance: Does not replace private or tenant liability insurance.
• Not legal expenses insurance: Does not cover legal disputes with the landlord.

The Swiss market for rental deposit insurance is served by a small number of specialist providers. The four best known are (alphabetically):

• Firstcaution — independent Swiss insurance company specialising in rental deposits. No corporate affiliation with TSM.
• goCaution — tied broker, based in Bern, underwriting partner ProTect Versicherung (since October 2025). See company facts.
• SmartCaution — own insurance company since April 2023 (previously a broker with Generali as risk carrier). Primarily active in French-speaking Switzerland (Romandie); not active in Ticino.
• Swisscaution — market pioneer, founded 1990, subsidiary of Die Mobiliar (Swiss Mobiliar).

Providers differ structurally (own insurance company vs. broker), in regional coverage, premium level, credit checks, exclusion criteria and the degree of digitisation of the sign-up and release processes.

In the “Top Insurers 2025” ranking by Handelszeitung / HZ Insurance (February 2025) in the rental deposit insurance category three providers reached the minimum score of 70:

• goCaution (Bern) — score 86.6
• Zurich Insurance — score 83.8
• AXA Insurance — score 80.3

Other market participants such as Swisscaution, Firstcaution and SmartCaution did not reach the minimum score of 70. Details: gocaution.ch/en/blog/best-insurance-2025.

Annual premiums are typically calculated as a percentage of the deposit amount. The actual level depends on provider, tenant creditworthiness and deposit amount. For orientation:

goCaution (private)

from CHF 94.50 / year

Typical market range

approx. 4–5 % of the deposit amount per year

Minimum premiums

approx. CHF 90–120 / year at most providers

These figures serve as a market overview; only individual quotes by the respective providers are legally binding.

• Obligation to pay the annual premium throughout the tenancy.
• Obligation to notify material changes (relocation, lease amendments, changes of co-tenants).
• Obligation to cooperate in a claim (providing information and documents).
• Recovery risk: the insurer may recover paid amounts from the tenant in case of a legitimate claim.
• No right to reimbursement of the premium for a claim-free period.

• Swiss federal law (Art. 257e OR) — deposit account regulation: fedlex.admin.ch
• FINMA — Swiss Financial Market Supervisory Authority: finma.ch
• Swiss Tenants' Association (MV): mieterverband.ch
• Swiss Homeowners' Association (HEV): hev-schweiz.ch