Rent deposit insurance in Germany

Rent deposit insurance in Germany (Mietkautionversicherung) is an insurance that replaces the security deposit and provides security for landlords by tenants. With this insurance, you can live safely in your new home without paying a deposit of even 1 Euro to the landlord. Rent deposit insurance for expats in Germany are quite popular to avoid the obligation to keep thousands of Euro as rental deposit with the landlords.

Why is rent deposit insurance in Germany necessary?

Rent deposit insurance benefits landlords and tenants. In this way, the insurance guarantee offers tenants the opportunity to secure a deposit without digging deep into their pockets.

On the other hand, rent deposit insurance protects owners of privately rented housing against loss of rent. If a tenant fails to pay their rent, the insurance takes over the outstanding amounts.

Insurance coverage example

Renting in Germany

Matthew has discovered a house in Düsseldorf available for rent at 1,500 Euros per month and is interested in leasing it. However, the landlord is requesting a deposit equivalent to three months' rent. Not wanting to commit 4,500 Euros as a deposit, Matthew decides to obtain deposit insurance instead.

Loss compensation with deposit insurance

Olivia, a landlord in Germany, intends to rent her house to a family who recently relocated to Cologne. However, the family faces financial constraints and is unable to provide a traditional deposit. In this situation, Olivia suggests that the family acquire deposit insurance. Upon their departure, any damages or costs can then be covered by the deposit insurance.

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Sample coverages above represent rent deposit insurance for expats in Germany and varies depending on the insurance company and tariff type. The applicable coverage is specified in your insurance tariff.

Rent deposit insurance in Germany

Why is rent deposit insurance in Germany necessary?

Insurance coverage example

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