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