Now that you have peace of mind with a DepositFree™ insurance policy, you're probably asking "what if I renew my tenancy?" Have no fear! You are able to renew your DepositFree™ policy to ensure both you and your landlord have cover when you extend your tenancy.
How much will it cost to renew DepositFree™?
The DepositFree™ insurance policy is calculated at a percentage of 8 weeks worth of rent, the percentage is based on the length of the policy.
Please be aware the total length of our DepositFree™ policy is 3 years, if your initial policy is for 3 years you will be unable to renew and will be required to purchase a new policy or pay a cash deposit.
1. Up to 12 months is 10% of 8 weeks worth of rent
2. Up to 24 months is 15% of 8 weeks worth of rent
3. Up to 36 months is 20% of 8 weeks worth of rent
When a renter renews they will be paying 5% of 8 weeks worth of rent for every year they renew. You will be able to renew for a maximum of two years, after this you will need to purchase a new policy or pay your landlord a cash deposit.
You are still required to pay Insurance Premium Tax (IPT) which is currently calculated at 12%.
Please see an example below of purchasing DepositFree™ insurance and the renewals process:
Mr. Smith has purchased a DepositFree™ insurance policy from August 13th 2019 to August 12th 2020, His weekly rent is £207. Therefore his DepositFree™ insurance policy is worked out as below:
£207 x 8 = £1656 = This is 8 weeks worth of rent
As the length of Mr. Smiths policy is 12 months he paid a premium of £165.60 + IPT
In July 2020, Mr. Smith is having a discussion with his landlord/agent in renewing his tenancy another year. His landlord/agent has agreed that he can extend his policy in place of a cash deposit and send him an invite to do so.
When Mr. Smith renews he will be paying 5% of 8 weeks worth of rent for every year he renews, so his renewal price is £82.80 + IPT.