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Deposit Replacement Insurance

An Insurance alternative to a standard cash deposit.


Available for residential tenancies and rent-to-rent.

An off-the-shelf product to help let your properties faster while providing more protection than a traditional deposit.

A tenancy deposit is a sum of money that a landlord (or their agent) can request at the beginning of a tenancy to act as security against non-payment of rent, damage to the property or removal of the tenant's belongings.


A tenancy deposit in the UK in most cases is currently limited to 5 weeks' rent which can leave you out of pocket if the costs to repair your property exceed 5 weeks' rent.

Gaining access to money owed to you for repairs is essential for minimising the time it takes to re-let your property. If a tenant disputes your claims, gaining access to a security deposit can be a long process. In many cases, mediators and judges tend to side with tenants, meaning you’re left to cover the cost of repairs and missed rent out of your pocket.

What is Deposit Replacement Insurance?

Deposit Replacement Insurance is a legal expenses policy which covers you for legal expenses up to £50,000 if there is a dispute with your tenant for damage found following a mid-term inspection or end-of-tenancy check-out.
If the insurer is unable to negotiate a settlement, the insurer will pay up to 6 or 12 weeks' rent for damage and rent arrears. 

Deposit Replacement Insurance isn’t just beneficial for landlords. It also makes properties more attractive to renters, as they know they are less likely to be stuck with large upfront costs when starting a new tenancy. 

Benefits of Deposit Replacement Insurance

£50,000 Legal Expenses

To negotiate any dilapidations dispute with your tenant following an end-of-tenancy check or mid-term inspection.

​6 or 12 weeks cover for rent arrears and dilapidations

Where the insurer is unable to negotiate a settlement, they will pay up to 6 or 12 weeks' rent.


Fact-based claims

Claims are based on the inventory conducted at the start of the tenancy and the check-out report conducted at the end of the tenancy. 


Why Choose Deposit Replacement Insurance?

As a landlord, Deposit Replacement Insurance provides you more protection than a standard cash deposit. A cash deposit is currently limited to just 5 weeks' rent meaning if a tenant causes damage with a value of more than 5 weeks' rent, you may need to take further legal action.

Deposit Replacement Insurance gives you legal expenses of up to £50,000 for the insurer to try to negotiate a settlement between both parties. Where the insurer cannot negotiate a settlement, the policy will pay up to 6 or 12 weeks' rent. 

By taking Deposit Replacement Insurance, the tenancy becomes a no-deposit tenancy, meaning you don’t have to adhere to the regulatory burden of taking tenancy deposits. 


Rent to Rent

Utilising Deposit Replacement Insurance as a rent-to-renter will give you many benefits to help your business grow faster.

Firstly this insurance will reduce the upfront cost that comes with taking new properties, allowing you to grow faster without worrying about your cash flow.

The average rent-to-rent agreement is between 3-5 years meaning your deposit is locked in the landlord's account not earning you anything. Inflation is eating away at your purchasing power meaning the value of that deposit is worth less after the term.

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