The rental deposit is a noticeable financial burden for many tenants: up to three months' rent has to be paid when moving in. That money stays tied up for years and is missing when it is needed elsewhere. Rental deposit insurance (Mietkautionsversicherung) offers an alternative: instead of paying the deposit in cash, the insurer provides a guarantee to the landlord.
The principle is simple: instead of paying the deposit to the landlord, you pay an annual premium to the insurance company. If a claim arises, that is, the landlord has justified demands, the insurer pays the landlord. Unjustified demands are examined and can be rejected. Afterwards, any amounts the insurer has paid are charged to the tenant.
The big advantage: the deposit money stays in your hands. You can invest it, use it for other expenses or simply keep it as a financial reserve. When you move home and the old and new deposits overlap in time, rental deposit insurance can bring considerable relief.
Landlords increasingly accept this form of deposit, because it is backed by a solvent insurance company. It is often even safer than a cash deposit on a savings account.
We explain the terms and help you decide whether rental deposit insurance is the right choice for your situation.
Rental deposit insurance: benefits
More financial room: A rental guarantee instead of a cash deposit. With the Allianz rental deposit you do not have to put up any of your own money as security. Use those funds for the move, renovation or new furniture.
Fits your situation: Can be cancelled at any time by returning the guarantee certificate. A bridging solution for the rental deposit.
Fast and reliable: Guarantee certificate within 24 hours of concluding the deposit insurance contract. The rental security is available in full quickly.
Requirements: Minimum age 18, rental property in Germany, private residential use, valid bank account with SEPA direct debit, good credit standing.
The deposit is paid out if: tenants fail to pay rent, do not pay service charges, or do not settle damage caused during the tenancy.
The deposit is not paid out if: tenants demand payment (benefits go only to landlords), demands are clearly abusive, or the original guarantee certificate is not submitted.
Rental deposit insurance: tips
For damage to the rented property, remember to report it to your insurer. That way you avoid recourse against your rental deposit.
Insurance that can absorb damage to rented property:
- Liability insurance: Damage to the rented property is often covered by private liability insurance (Privathaftpflichtversicherung).
- Legal expenses insurance: For disputes with landlords, property legal expenses insurance (Immobilien-Rechtsschutzversicherung) helps (lawyers' fees, experts, court costs).
- Home contents insurance (Hausratversicherung): Covers movable belongings, useful for tenants and owners.
Steps to take out cover:
- Get the landlord's agreement
- Enter your data exactly, using the rental contract as a reference
- Give your current registered address from your ID card
- A SCHUFA check is carried out automatically
- After a positive check, hand the guarantee certificate to the landlord
