Deposit insurance claim

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    Deposit insurance claim

    Hi all, first time poster here. I recently let a property and instead of placing a deposit the tenants took out deposit insurance. This is the first time I've done this. Apparently it's a new thing and becoming quite popular. I think the policy was sold to the tenants by the letting agent and the letting agent assured me the insurance was as good as a deposit. Last May the tenancy ended and I had to make a claim on the deposit for some repairs. The tenants have disputed the claim and the process is going nowhere. I am dealing with the agent and, as far as I can tell, they have just spent the last 8 months trying to convince the tenants to pay up and haven't involved the insurance company at all yet.



    It seems to me the tenants have no incentive to come to a settlement because they have no deposit at risk and have presumably already paid the insurance premium. I have asked the agency to refer this to the insurance company several times but they seem reluctant to do this and keep negotiating with the tenants who, in turn, keep delaying. The whole process is going round in circles. I have received no documentation relating to this insurance so I don't even know the name of the insurance company to see if I can complain to them. There is a clause in the tenancy agreement in lieu of the deposit clause saying insurance is required and I should receive a written copy. I have requested that.



    It looks like I have been sold a pup and the insurance is not worth the paper it's written on - assuming it even exists. Needless to say I have not accepted deposit insurance on any of my properties since. Does anyone have any suggestions on how I can formally move this forward? Should I be taking action against the tenants, the agent or the insurance company?
    Tags: None
    #2
    If you've suffered a loss as a result of the tenancy beyond fair wear and tear, you can seek to recover this from the tenants ignoring the deposit process or the insurance.
    It's probably up to the tenants to claim from the insurance that they took out.

    So I'd write to the tenants (or tell your agent to) demanding the money (and detailing the basis for the claim) stating that your next action will be to commence legal proceedings to recover your loss.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).
    • 1 like

    Comment

      #3
      Thanks for the feedback. Yes this is repairs beyond wear and tear. I've already given them a detailed breakdown of costs itemised as they were listed in the check out report. I thought I could go straight to the insurance company and make a claim. Looks like I am going have to go down the route of taking action against the tenants. This will be a near impossibility as they have moved out and I don't think they are even living together anymore.

      Comment

        #4
        If you tell your agent to make a claim on the insurance, they'll either have to do it or reveal that they sold you a pup.
        Or tell them to send the letter before action.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).
        • 1 like

        Comment

          #5
          So who claims on the insurance, the tenant, the landlord or the agent?

          Comment

            #6
            Presumably the tenant claims, as they supposedly paid the premium.

            Comment

              #7
              I saw one of these deposit replacement schemes advertised on Facebook recently, had not heard of them before, the below page gives an overview. It states that the provider pays the landlord and then the provider claims back from tenants. Note the mention of commission paid to agents.
              https://blog.openrent.co.uk/rent-wit...ent-insurance/

              Comment

                #8
                Originally posted by amy131 View Post
                I saw one of these deposit replacement schemes advertised on Facebook recently, had not heard of them before, the below page gives an overview. It states that the provider pays the landlord and then the provider claims back from tenants. Note the mention of commission paid to agents.
                https://blog.openrent.co.uk/rent-wit...ent-insurance/
                Yes thats what I thought but I don't even have the name of the insurance company let alone a policy number. I've asked the agent to provide the details.

                Comment

                  #9
                  Perhaps look at the agent's website and listings and you may see them promoting the scheme.

                  Comment

                    #10
                    I think your agent may not have paid for the insurance - so I would suggest you ask for proof that they did or claim against them.

                    Comment

                    Previous template Next

                    Latest Activity

                    Collapse
                    • Insurance problem
                      by pebblepebble
                      I have just been told by my insurance agent that current insurance company have refused to insure again due to the illegal occupiers currently living there. He said of all the others he contacted only one would give a quote - this was hugely inflated and had exclusions which I am not happy about....
                      15-01-2021, 14:39 PM
                    • Reply to Insurance problem
                      by pebblepebble
                      Because two different solicitors have not suggested that course of action. Eviction is currently in progress and the current insurers are paying for that.

                      The tenants were living there for the first three months of missed rent (and the brother was staying with them). We had all the excuses,...
                      16-01-2021, 17:18 PM
                    • Reply to Insurance problem
                      by DPT57
                      If the tenants are not living there, you could have served a common law Notice to Quit to end their tenancy 10 months ago. Unless the current occupiers can show that they have a valid sub-tenancy, they would be trespassers and could have been removed then. Why has it taken all this time?
                      16-01-2021, 16:52 PM
                    • Reply to Insurance problem
                      by pebblepebble
                      They were given the keys by the tenant's brother who stayed on for a while after the tenants moved. No rent paid for over 10 months.

                      Edited to add tenants moved out last June....
                      15-01-2021, 19:15 PM
                    • Reply to Insurance problem
                      by theartfullodger
                      How " illegal occupiers """? How did they gain access please? Who permitted it, who provided keys (or not..), and have you accepted rent from them or not, please?
                      15-01-2021, 19:05 PM
                    • Reply to Insurance problem
                      by pebblepebble
                      No it wasn't me, this is my only post on the subject and I only found out today. It's not a rent to rent scheme or HMO just two men living there who aren't the tenants.

                      Yes to the eviction process - I had the review hearing this week and waited three months for that. The insurance company...
                      15-01-2021, 17:48 PM
                    • Reply to Insurance problem
                      by DPT57
                      I think I might have replied to this question on a different forum, but in case it wasn't you. My brother-in-law had this problem when a property he had rented through a rent to rent scheme, (against my advice I hasten to add) suddenly became a licensable HMO due to a change in the local authority licensing...
                      15-01-2021, 17:20 PM
                    • Deposit insurance claim
                      by Milzee
                      Hi all, first time poster here. I recently let a property and instead of placing a deposit the tenants took out deposit insurance. This is the first time I've done this. Apparently it's a new thing and becoming quite popular. I think the policy was sold to the tenants by the letting agent and the letting...
                      14-01-2021, 15:06 PM
                    • Reply to Deposit insurance claim
                      by jpucng62
                      I think your agent may not have paid for the insurance - so I would suggest you ask for proof that they did or claim against them.
                      15-01-2021, 14:33 PM
                    • Reply to Deposit insurance claim
                      by amy131
                      Perhaps look at the agent's website and listings and you may see them promoting the scheme....
                      15-01-2021, 14:28 PM
                    View All
                    - Advertisement -
                    Working...
                    X