The No Deposit Scheme is an insurance policy which allows the tenant to move in to a property without the hassle of finding a deposit. Instead they would pay a fee of £145.00 to take out a policy with Red Sands Insurance Company; an FSA registered insurer.
This policy would cover the landlord for loss of rent and damage to the property to a maximum of 3 months rents or £2,500 whichever is the lesser. It also covers the landlord for legal expenses should they require court action to remove a bad tenant.
The tenants are vetted and would sign a deed of indemnity at the same time that they sign the tenancy agreement. The deed says that the policy will pay out to the landlord but it does not remove the liability from the tenant and the insurers will seek recompense.
Please ASK MAS for more details on 01332 257010