What is DepositFree™ Insurance and how does this help you as a tenant?
Instead of having to worry about finding a large cash deposit to secure a rental property, Canopy offers renters the choice of an affordable DepositFree™ insurance policy which replaces cash deposits.
What does the policy cover?
If you rent a property from a landlord, you might have to pay at least 5 weeks cash as security deposit to the landlord. With Canopy cover, you purchase the deposit policy which gives the landlord 8 weeks protection for a fraction of the cost. You are responsible for settling any financial loss or damage suffered by the landlord under your assured shorthold tenancy agreement. Claims are capped at the coverage limit being 8 weeks security cover.
Although you are still liable for any claims submitted, at Canopy we understand life happens. We will be there for you as you will be covered for life events. This includes:
- If you suffer from a critical illness
- Lose your job / or your employer reduces your salary by 25%*
If there is a claim from the landlord (at the end of your tenancy contract), then, subject to proof, Canopy will settle the claim with the landlord and not seek any recovery from you.
*Please note communicable diseases such as the on going COVID-19 pandemic are not covered.
How much does it cost?
The cost of a policy is dependant on the length of the tenancy:
- 10% of 8 weeks rent for up to a 12 month lease
- 15% of 8 weeks rent for up to a 24 month lease
- 20% of 8 weeks rent for up to a 36 month lease
All premiums are subject to Insurance Premium Tax (currently at 12%).
For example, if your weekly rent is £150, then the deposit insurance premium for a 1 year lease would be £120. Plus insurance premium tax. The total cost you’d pay would be £134.40.
Unlike a traditional cash deposit, you will not receive any of your premium back.
You can cancel your policy within the cooling period which is the first 14 days after purchase, thereafter you are bound by the contract. There are no costs for cancelling and we will refund your money if you cancel within the cooling period but you will be required to put down a cash deposit or landlord's chosen alternative for the property.
How do claims work?
As with cash deposit, you will sign an inventory check-in report and an inventory check-out report which is the basis of any reasonable claim. Claims are capped at the coverage limit being 8 weeks deposit.
- Claiming works in the same way a traditional cash deposit claim is settled. Agreement of a claim will be required from all parties.
- If at the end of the tenancy, if you do not make a payment to settle any financial loss or damage to the landlord or agent, then the landlord or agent can submit a claim to Canopy.
- Canopy will settle the claim with the landlord, and then collect any monies owed from you, the tenant.
For information on how to qualify for DepositFree™ Insurance click here.