Avoid Deposit Disputes With Tenant Liability Insurance

Thursday, January 22, 2015

Avoid Deposit Disputes With Tenant Liability Insurance

Avoid Deposit Disputes With Tenant Liability Insurance from Legal 4 Landlords

17% Of UK PRS Landlords Lost Deposit Disputes In 2014
Through Failing To Provide Evidence To Support Claims

According to recent data published by the Deposit Protection Service (DPS) many private rental sector (PRS) landlords operating rental property businesses without Tenant Liability Insurance failed to respond to deposit disputes in time to secure payments for tenant damages to rental properties.

The DPS is just one of the Government approved deposit protection schemes operating in the UK, which exists to protect a tenant’s deposit during the term of a short-hold tenancy in private rented accommodation and they also provide a separate independent adjudication service for deposit disputes between landlords and tenants.

The DPS reckon that 17.63% of landlords (1 in 6) operating rental property businesses in the UK’s private rental sector, that were required to submit evidence after agreeing to deposit dispute resolution, either missed the deadline or didn’t send any supporting evidence for their claim in 2014, resulting in automatic pay out rulings being made to the tenants involved.

Tenants were even less likely to submit supporting evidence to the DPS in time, with 22.86% of tenants either providing evidence after the deadline or failing to send any at all.During 2014 failing to submit evidence at all was more common than missing deadlines, with evidence from 10.37% of landlords and 15.77% of tenants recorded as never being submitted.

However, there is a much better alternative for landlords and their tenants to help them avoid getting into such disputes in the first place – Tenant Liability Insurance, allowing tenants to protect the full value of their deposit against any accidental damage caused to rental properties.

Accidents happened, and even to the most careful tenants and even unintentionally caused damage could cost them the full value of their deposit, or worse, much more in excess.

Legal 4 Landlords tenant liability insurance provides insurance cover to tenants for accidental damage claims up to £2,500.

Even if the damage caused was accidental, it is still the tenant’s responsibility to pay for the repairs to the building itself and any fixtures, fittings and furniture provided with it, or the landlord is entitled to deduct the cost of the repairs from the tenant’s deposit.

Legal 4 Landlords tenant liability insurance provides peace of mind for all types of tenants in rented properties and covers accidental damage to rental properties for claims up to £2,500 (GBP), for just £60 per year.

Avoid claims for accidental damage costs

  • 12 months cover for just £60
  • Protect tenant deposits
  • Claims covered up to £2,500

If the value of the tenant’s deposit does not cover the cost of the repairs, the tenant will still be expected to pay the difference to the landlord and if there is a guarantor in place, they could also become liable to pay for the repairs.

Don’t leave deposit disputes to chance – avoid them altogether with Tenant Liability Insurance from Legal 4 Landlords

This was written by Mike Clarke. Posted on at 11:30 am. Filed under Insurance. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.