City firms bid to replace tenant deposits with insurance passport

A tenant deposits platform backed by two major City firma has launched with the aim of competing with the current cash deposit schemes. Backed by both Hiscox insurance and credit score provider Experian and accessed via an iPhone app, InsureStreet says it will issue renters with a digital ‘RentPassport’ that validates their profile and then provides them with an instant insurance quote to cover their deposit. Tenant deposits Instead of paying a cash deposit, renters make a one-off payment for an insurance policy that covers them for the duration of the rental contract. InsureStreet claims that in most cases, this insurance premium will be less than a tenth of the cost of a deposit, and that the system will reward good tenant behaviour by offering lower premiums at renewal. The app is free for agents, landlords and renters to download and use, the company says. But what’s not clear is whether the premiums paid by renters for the insurance will be included in the looming letting fees ban. The Negotiator asked CEO Tahir Farooqui (pictured, below) about this. He replied that: “We absolutely support the letting fees ban and so do many of the property partners we are engaging with” which would indicate…