Deposit insurance claim

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    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?

    #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).

    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).

        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

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                      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...
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