Insurance scheme - information for tenants

Since 1 April 2013, if you start renting your home and pay your landlord a deposit, they must protect your deposit under the Tenancy Deposit Scheme. If your landlord uses an insurance scheme, they hold your deposit and pay a deposit protection fee to the scheme administrator.

Benefits of the insurance scheme

When your landlord uses an insurance scheme to protect your deposit:

  • they pay a deposit protection fee or insurance premium to a scheme administrator
  • the scheme administrator protects your deposit if your landlord or their letting agent go out of business

When your deposit is protected by an insurance scheme

Your landlord or their letting agent cannot make a claim on your deposit during your tenancy.

Transferring protection of your deposit

Your landlord or agent can move protection of your deposit to another scheme administrator. They can move protection from an insurance scheme to a custodial scheme.

Getting your deposit back from an insurance scheme

To get your deposit back at the end of your tenancy, you need to ask your landlord. You should write and ask them to repay your deposit.

Agreement about repaying a deposit

If you and your landlord agree the deposit to repay, your landlord must return your deposit within five working days.

lf your landlord doesn't return the deposit within this timescale you should tell the scheme administrator. With your consent, the scheme administrator starts dispute resolution action.

Disagreement about repaying a deposit

If you disagree about how much should be repaid, your landlord must give the disputed amount to the scheme administrator until the disagreement has been sorted out.

If the scheme administrator decides you should get back all or some of your deposit, the scheme administrator will pay this amount to you directly. They'll get it back from the landlord later.

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