Tenancy Deposit Insurance

Tenancy Deposit Insurance for UK Landlords

Tenancy Deposit Insurance is part of the Tenancy Deposit Protection Scheme and is a Government backed proposal where the tenants deposit is placed where the landlord holds the deposit then pays a premium as ‘insurance’ to an insurance company to pay back the deposit to the tenant.

The positives of this outweigh any negatives due to these factors:

  • The deposit is backed by an insurer.
  • Conflict is avoided.
  • Within the schemes, these two types of tenancy deposit scheme provide a free dispute resolution agreement.

Insurance Based:

  • Deposit is paid to the landlord.
  • Deposit retained by the landlord and pays a premium to the insurer.
  • Legally, and within 14days give the tenant details on:
  • The TDS selected.
  • Your details and contact points.
  • Information to release the deposit.
  • What the deposit is for.
  • What the tenant must do if in dispute.

At Termination of the Tenancy Agreement

  • Any dispute, the landlord hands over the disputed amount to the insurance company, until the dispute is resolved.
  • The insurer will return the disputed amount to the tenant if so entitled to.