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Deposit Replacement Insurance

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166 views 3 replies latest reply: 23 August 2017
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Tenant

Hi everyone,  I have heard of a product called Deposit Replacement Insnsurance from a company called Dlighted, where you don’t have to pay a deposit and instead pay a insurance fee.

Has anyone heard of this or ever done it? Would you recommend it?

Many thanks.

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Tenant

Mis spelling *Deposit Replacement Insurance

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Tenant

We know of them, but nobody in the community has so far shared their experience, if any. There are more schemes similar to Delight. Reposit is one of the most mentioned names in this new industry. 

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Tenant

I’ve been a tenant all my working life… And since most of that work has been in the Banking Sector, I know it makes much more financial sense to rent property, than to rent the money to “buy” a property.

With a wife, three kids, two dogs, four cats and a gecko in tow, I have still to experience the joy of vacating a rented property, with a 100% deposit refund!

I’ve never had a dispute with a landlord over the return of the deposit. Whenever money has been deducted, it has always been fairly agreed as a reasonable amount to cover the cost of damage caused by children and/or animals, during what have tended to be 3-5 year tenancy periods.

Still grates though. And when I’m trying to get the money together for the deposit on a new place (which of late seems to have been upped to 2 months’ rent), along with all the other moving expenses… The uncertainty and resentment around “negotiations” to agree how much of my deposit I can hope to get back has always been something I dread about moving.

Anyhoo…

Yesterday, I received the renewal notice for my Home (Contents) Insurance from RSA (Royal Sun Alliance), and I noticed a couple of line items on the schedule:

“Tenant’s Improvements” and “Tenant’s Liability Insurance”.

I know what I hoped the second of these meant, but decided to give RSA a call to clarify. Wasn’t much point, as the person in RSA’s Call Centre wasn’t any more able to explain them than I was. I was told, “Oh. Yes. Well, what Tenant’s Liability Insurance is, is insurance that covers your liability as a tenant. Is there anything else I can help you with?”

So I figured I’d let my fingers do the walking, and have just spent an instructive hour with Google, researching “Tenant’s Liability Insurance”.

Most of the prominent, non-commercial Google hits related to Letting’s Agencies requesting that prospective tenants take out “Tenant’s Liability Insurance” with an insurance company that the Letting Agency gets commission from…

Next most prominent was information that seems to indicate that “Tenant’s Liability Insurance” is included as standard in just about any “Home Contents Insurance” policy.

RSA had actually confirmed that, when I called yesterday. Was in fact the first thing they confirmed, because they probably suspected I was looking to shave “features” off my policy to reduce my renewal premium (I wasn’t…).

Still no real clues as to what “Tenant’s Liability Insurance” is, or what it covers.

Until I found this site:

http://blog.legal4landlords.com/index.php/tenant-liability-insurance-is-best-method-for-protecting-tenancy-deposits/#.WZ2Edv6WxaQ

Which states:

Tenant Liability insurance ensures that the tenant will get deposit monies returned in full at the end of their tenancy, as well as providing the landlord with peace of mind that most accidental damage will be covered, making it a win-win for both parties.”

…Exactly what I was hoping to discover!

So I have now gathered the following:

  1. Tenant’s Liability Insurance is included as standard in most Insurance companies’ “Home Contents Insurance” policies. So anyone interested should check their existing Contents Insurance to see if this is the case.

  2. If not included in your “Home Contents Insurance”, Tenant’s Liability Insurance can be obtained as a stand-alone policy. And the premiums I’ve just seen seem to indicate that £5 to £8 a month provide cover up to £2,500 (the cover I get as standard on my “Home Contents Insurance” policy covers up to £10,000).

  3. As best as I can make out… If you have this insurance, at the end of your tenancy, any claim that your landlord/letting agent presents to you for damage or “unreasonable” wear-and-tear (but not end of tenancy professional cleaning), can be passed straight to your Insurance Provider.

    Your Landlord/Letting Agent then has to convince your Insurance Company that they are making a valid claim for damage/”unreasonable” wear-and-tear, rather than you.

All of which I *REALLY* wish I’d known sooner… Because it looks like I’ve had this cover for at least my last two tenancy exits, and could have saved myself a good few thousand pounds!

Haven’t tested any of this yet… But given that my current Landlord, in his wisdom, decided to refit our current home with sparkling white carpets, after knowing that he was going to be letting to a family with 3 male children (two of whom are under 10 years old), two dogs, four cats, and the Gecko…

…I very much expect I will be putting my findings to the test, as and when we next move on.

Not sure if this is directly related to the original posters’ question, but it seemed the most appropriate place to share.

Hope it helps!

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