Why a deposit is not a substitute for landlord insurance
Deposit protection helps to manage a range of end-of-tenancy issues, but it’s not a substitute for landlord insurance
Even a full five-week deposit may not be enough to cover the full cost of damage or rent arrears - especially in high-rent areas. Landlords need cover that goes beyond what a deposit can provide. That’s why comprehensive landlord insurance is essential.
With rising landlord insurance claims for damage, and the average deposit at mydeposits being around £1,000, it may not be enough to cover things like accidental or malicious damage, or repairs to a property following an incident like a burst pipe.
Steve Barnes, Head of Broking at Total Landlord, advises:
“More landlords are seeing the value in combining deposit protection with comprehensive landlord insurance. The right policy can protect against malicious damage, rent loss and more - things a deposit alone may not cover.”
Get an award-winning landlord insurance quote online today or call the team on 0800 634 3880 to discuss your insurance needs
Once the Renters’ Rights Bill comes into force and landlords will not be able to unreasonably refuse a tenant's request to keep a pet, it may be worth checking out policy extensions such as pet damage protection insurance for an extra layer of security. Our research shows that while pet damage claims are very small in number, in 35% of these claims, the amount proposed is greater than the deposit.
Changes to the law proposed under the Renters’ Rights Bill will also make legal expenses and rent protection insurance more necessary for most landlords.
“With the removal of Section 21, landlords will need to navigate a more rigorous legal process under Section 8, which will be more time-consuming and costly. Legal expenses insurance serves as a crucial safety net, covering the substantial costs of legal proceedings, court fees, and professional representation, making sure that landlords can take necessary action without the burden of unexpected expenses. Coupled with rent protection insurance, which provides essential income protection when tenants default, these policies are more important than ever. In an evolving rental market where landlords face greater legal hurdles, having this level of protection is not just advisable—it’s essential for financial security and peace of mind.”While deposit protection is a flexible tool for managing a range of end-of-tenancy issues, it’s not a substitute for landlord insurance."
“While deposit protection is a flexible tool for managing a range of end-of-tenancy issues, it’s not a substitute for landlord insurance.”
