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6 October 2009

“No deposit” insurance helpful to tenants and landlords

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by Gill Montia

Paragon Insurance is reminding landlords and students of the existence of “no deposit” insurance, whereby a tenant pays a one-off premium for an insurance policy, in lieu of a deposit.

Students in particular can be excluded from the rental market because of deposit demands and for landlords, the insurance can widen the scope of potential tenants.

Where necessary, landlords can claim on the policy to recoup losses normally covered by a deposit, and according to Paragon, the cover has added benefits for some tenants.

Many are not aware that their deposits must be held in a government-approved scheme, leaving them exposed to unscrupulous landlord who will take advantage of their lack of knowledge.

Whereas, using no deposit insurance means that if a dispute should arise, mediation would take place, with payment being made to the landlord within 14 days, subject to the terms and conditions being met.

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