Has anyone claimed on tenant default insurance?

Has anyone claimed on tenant default insurance?

9:53 AM, 2nd April 2024, About 2 weeks ago 6

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Hello, Does anyone have experience of claiming on tenant default insurance? I have had a tenant default claim refused since they say that as the tenant does not have any money that they could recover, they consider the case does not comply with their policy.

Seems weird as I would have thought that that is exactly why the tenant has stopped paying the rent; because they don’t have any money.

It seems that the tenant default insurance policy I have is not worth the paper it is written on.

Have any others found this?

Tim


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Comments

Pete

12:15 PM, 2nd April 2024, About 2 weeks ago

Hi i have not but have signed up with direct line and they said we are covered providing that the credit checks are done, have been in full time work for at least 6months. And we have given all necessary right to rent paperwork and gas and echr.
Was told if all this is in place should not have issues.
Lets hope I don't need to.

Monty Bodkin

12:24 PM, 2nd April 2024, About 2 weeks ago

Many have claimed, few have succeeded!

Kat Scott

15:17 PM, 2nd April 2024, About 2 weeks ago

Tim,
Normally this type of policy is linked to suitable reference credit passing? Was this the case with your policy? Who sold the policy to you, was it an agent? You need to find out why they took your money in the first place, presuming you passed their criteria. Take out a formal complaint with them after exhausting their internal complaints you can complain to FCA. The key is to ensure you comply with their criteria at the start.

TheBiggerPicture

15:23 PM, 2nd April 2024, About 2 weeks ago

I have had Homelet pay out on 2 policies with no issues. (currently paying out for a year, including rent increase).
But Homelet only allow you to sign up via an agent.

Jennifer Hope-Spencer

20:39 PM, 2nd April 2024, About 2 weeks ago

I've recently had the same problem with CIA insurers. It took months for them to check where absconded tenants had disappeared to and then said that as the tenants were supposedly unemployed that I didn't have a 50%chance of damage and rent recovery. Surely, that's what insurance is meant to pay out for!
I could have found out the information CIA solicitors told me almost immediately from the Court if I'd pursued a Section 8.
I intend complaining to the insurance Ombudsman if CIA refuse to honour the cover.
Remember, we have 6 years to take tenants to Court which is what I intend to do if CIA don't honour my claim.

Jason Cobine

10:12 AM, 8th April 2024, About A week ago

You mean that the people that sold you the insurance didn't explain the terms and conditions? Report them to the Financial Ombudsman Service.

I've worked in insurance for over 30 years and never seen a successful tenant default insurance or rent guarantee claim.

They get away with it because they pay the solicitors. So it looks like someone has received money. It is the solicitors that receive the "claim payment" not the policyholders.

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