Warning about SwissCaution and Mietkautionsversicherung

Accomodation, House and Garden
21
Check the Swisscaution terms (PDF on their web site, section 5):

upon presentation and surrender of the original notice to pay sent to the Tenant at the request

of the Landlord (supporting documents included), provided that it is enforceable and no

appeals, even partial, have been lodged, or it is accompanied by a final and enforceable

judgment that dismisses the original appeal;

So to make a claim through Swisscaution, the landlord simply has to assert that the claim is "enforceable", there is no prerequisite that he obtains the court order.

It is not clear what they mean by appeals, for example, whether Swisscaution will notify the tenant and give an opportunity to contest the matter or whether the tenant has to send a registered letter disputing the claim.

With a bank deposit scheme, the bank will not release the money to the landlord unless he takes the extra step of proving his claim in court (or obtaining the tenant's consent to deduct money from the deposit)

So with Swisscaution, if you have a slightly unscrupulous or opportunistic landlord, he has a shortcut to get this money.

In article 6 of the PDF:

If SC pays a sum to the Landlord in accordance with the rental guarantee, SC is immediately and

fully subrogated to the rights of the Landlord and is entitled, by means of a payment notice, to

seek reimbursement of any sums it has paid to the Landlord under the agreement, together with

administrative costs of CHF 100.- plus interest.

This substantiates the remaining part of the original post: that after Swisscaution pays money to the landlord, they go after the tenant to recover that money (plus their fees). Presumably as this is the focus of their business they are more highly optimized at pursuing such debts than a landlord on his own.

22
Well duh, how will Swisscaution know no appeals have been filed unless it contacts the tenant?

23
How can you trust something like that if it is not defined anywhere?

Here is the equivalent text from the Zurich Mietkautionsversicherung "AVB" document (translated from German by Google), notice they do not even mention the word appeal:

Zurich shall provide services for rent arrears , damage to property and other claims tenancy if the landlord submits one of the following documents :

a) written consent of the policyholder (hirer )

b ) or a final order for payment on rent payments or

other tenancy the landlord claims to policyholders

(Hirer ) .

c ) or a final judgment or an effective right opening decision on rent claims or other claims tenancy by the landlord to the policyholder (hirer ) .

In a) and b ) the landlord Zurich , in addition to about giving evidence as evidence of damage . The guarantee is carried out within the scope of the proven damage .

The amount of compensation is measured at points a) and b) after tenancy law principles , at point c) compensation in the amount of the claim amount listed in the documents is aligned.

Zurich provides services from damage to the rented property but only if the liability insurance of the policyholder does not cover these damages or such damages are not yet regulated by the liability insurance of the policyholder 90 days after their assertion .

Zurich which compensation to the owner directly with what the policyholder

agrees.

Point (b), the "final order for payment" is a much lower threshold than a court judgment and once again it appears the tenant is in a weaker position to dispute anything.

Also notice that if you pay for third party liability insurance and if they don't settle the claim quickly you could also end up losing.

If you look at the scope of the agreements, you will notice they are both quite broad: it is not just for damage and unpaid rent, it also covers any nebenkosten amounts in dispute. e.g. if the landlord tries to bill you for lift maintenance or an expensive new shared washing machine, you might find that they send the bill to Swisscaution.

24
Oh but it is defined. "Final judgement" implies "appeal". A judgement doesn't "just happen".

Your bank deposit guarantees against any and all costs owed to your landlord, including nebenkosten which are an integral part of rent.

25

Notice the three conditions are (a) OR (b) OR (c)

So a final judgment is NOT a prerequisite for the Mietkautionsversicherung scheme to pay out to the landlord, it is just one possible route.

I doubt any landlord would follow that route though when it appears route (b) is much easier and doesn't require the landlord to go to court.

Agreed - and if you really owe money you should pay it. The bank deposit guarantee does not pay anything to the landlord unless they either take you to court or get your signed consent.