Rental deposit insurance
The deposit insurance is one of the rental deposits . Rent deposit insurance can be taken out by private and commercial tenants to secure tenancies. The insurance company provides after completion of the insurance contract from a document, due to which the insurance company requirements of the owner from the lease from tenants in the maximum amount of the agreed security deposit settles on first demand or without "on demand",. "Upon first request" means that it is an insurance to provide a deposit security for private tenancies in accordance with §551 BGB - an unlimited absolute guarantee upon first request, waiving the defense, the challenge, the set-off and the advance action (§§ 770 and 771 BGB). If the landlord demands payment of the deposit from the insurer, the tenant will be informed and can lodge an objection in the form of liquid evidence (e.g. injunction, court order, etc.) within a certain period (e.g. 14 days). The tenant gives the landlord the guarantee certificate instead of a cash deposit , a deposit savings book or a bank guarantee . The insurance company demands an annual premium from the tenant, the amount of which depends on the amount of the deposit. As a replacement for the aforementioned securities, the rental deposit insurance secures all claims of the landlord from the tenancy against the tenant (e.g. compensation for repair costs for which the tenant is responsible and outstanding ancillary costs or the averting of a deficiency in the course of a replacement after setting a deadline against the tenant ). In the event of a claim, i.e. when the insurance company has to pay the landlord, the insurance company is entitled to reclaim payments made from the tenant or another person who has received the guarantee ( recourse ).
Benefits from the point of view of the tenant or landlord
For the tenant, taking out rental deposit insurance is an alternative to paying a cash deposit , handing over a deposit savings book or applying for a bank guarantee . The advantage for the tenant is that he does not have to pay the deposit in a sum that usually includes three months' cold rent that has to be paid in advance to the landlord. Instead, he pays the rental deposit insurance provider an annual premium and in return receives a guarantee certificate, which he hands over to his landlord. The rental deposit insurance is usually valid from delivery or from the date of handover to the landlord (depending on the provider). It ends when the tenancy has expired and the landlord no longer has any claims against the tenant. The exhibiting company is liable by an absolute guarantee.
For the landlord, the acceptance of a rental deposit insurance is voluntary. In this respect, he can insist on a different type of deposit. He may not refuse rent deposit insurance if he has agreed to rent deposit insurance before or when the contract was concluded. In addition, the rental deposit insurance must be accepted by the landlord if it is listed in the rental agreement. The fact that the rental agreement does not provide for a deposit through rental deposit insurance does not violate good faith in accordance with § 242 BGB .
Application and conclusion
You can apply for rental deposit insurance from almost all providers via the Internet , but also by phone. The online application filled out by the tenant contains personal details as well as information about the rental property, the required deposit amount and the landlord. The verification of the application by the insurance company also includes a credit check of the tenant via a credit agency (e.g. SCHUFA, Infoscore, etc.). If the tenant's application is accepted by the insurance company and the legal transaction is concluded, the guarantee certificate is issued and sent to the tenant, who hands it over to the landlord. Depending on the provider, the term of the rental deposit insurance begins with the delivery of the certificate, within 24 hours if the contract is taken out online, or on the day it is handed over to the landlord.
If the landlord agrees, the rent deposit insurance can also be used to replace the deposit already paid for an ongoing tenancy and to convert it into cash. This comes e.g. B. in the case of a suddenly occurring financial bottleneck of the tenant into consideration. In this case, the landlord pays the tenant the deposit against delivery of the insurance certificate. The tenant can freely dispose of this cash and use it for other purposes.
costs
Depending on the provider, the costs for rent deposit insurance consist of a basic fee and a contribution, the amount of which corresponds to a certain percentage of the insured rental deposit. (Processing fee) For some providers, the basic fee does not apply. Other insurance companies charge a higher basic fee in the first year than in the following years (as an admission fee has been included). Depending on the respective tariff, the annual percentage is between 5.0 and 5.25 percent of the insured deposit amount.
End of contract and termination
The rental deposit insurance ends as soon as the insured tenancy is ended and fully billed and the landlord releases the insurer from the guarantee without reservation. In addition, the rental deposit insurance can be terminated at any time by sending the insurance certificate. The tenant also has the option of terminating the rental deposit insurance with a contractually agreed notice period. In this case, however, the insurance only ends when the liability from the insured tenancy has expired. The insurance must, however, offset a certain amount of additional liability.
criticism
Tenants who take out rental deposit insurance must be aware that the contributions paid will not be reimbursed at the end of the contract period even if the insurance cover has not been used by the landlord. In contrast to this, a cash deposit offers the tenant a legally prescribed interest rate on the deposit paid. Against this background, the fees for a rental deposit insurance must be viewed as compensation for the fact that the financial expense of the deposit payment is eliminated. However, rent deposit insurance can be a suitable solution for bridging a short or medium-term financial bottleneck.