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  • Deposit Protection

    Insurance policy instead of deposit

    At first glance, I think this is a good idea.

    Has anyone used such a scheme?

    "D-lighted offers a simple alternative to the Tenancy Deposit Scheme’s (TDS) currently operating in the private rented sector. Our clients have exclusive access to a Deposit Replacement Insurance Product with up to £7,500 protection"

    http://www.dlighted.co.uk/

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    Don't believe them

    Have you any idea how much capital would be required per policy if it had to pay out!?

    You surely know it could take a year before eviction processes are concluded and property is ready to let again!

    It really isn't hard for tenants to save up 2 months rent as a deposit

    Those that can't be bothered don't deserve to be tenants

    Just use RGI and deposits with you holding the deposit monies.

    These guaranteed rent policies aren't worth the paper they are written on.

    At least RGI is backed by insurance underwriters who risk their personal assets.


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    I don't think you have read the details of the scheme (and others like it) that I linked to have you?

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    Nope I haven't

    The only scheme I would trust is Northwood

    For a company to be going for over 20 years I reckon I trust them.

    Yes they charge a hefty premium but I believe they have solid and deep financial resources

    Something that most new entrants haven't got.

    If I ever needed Guaranteed Rent etc I would default to allowing Northwood to manage things.

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    Just a thought: Maybe it is sensible to read posts & links therein before replying.

    this has nothing to do with rgi at all.


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    Hello paul the scheme is an insurance policy and is, therefore, subject to all FCA regulations, covers damage/legal and rent.



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    Ajay Jagota 

    What I'm saying is you don't really need a deposit if you have RGI.

    Very few LL ever succeed in winning deposit claims disputes.

    I wouldn't trust an insurance for a deposit scheme at all.

    Quite frankly if a tenant can't come up with cold hard cash as a deposit would any LL want them as a tenant!

    Insured deposits sounds like another PPI scandal in the making.




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    FCC Paragon have been doing a similar product; the Smart Deposit Solution for a while now see http://fccparagon.com/services/services-for-tenants/ , They have been going for several years.

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    Thanks

    I think the idea is a good one.

    If the market gets competitive enough, it could become "no brainer" good value

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    Hello, Pipllman thank you there are a number of additional benefits the policy and Dligjted offer.

    We developed the product and have used the scheme in our agency for last 5 years very successfully.

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    Ajay Jagota 

    The FCC paragon product is a warranty product not to be confused with insurance.

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    Ajay Jagota