# Insurance that every individual needs… Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-02-04 Category: INSURANCE Category URL: https://financedigest.com/category/insurance Meta Title: How Deposit-Less Renting Can Better Support Private Sector Meta Description: Discover the issues faced by private sector renters in the UK and how insurance products like rental guarantor services can provide peace of mind and practical URL: https://financedigest.com/insurance-that-every-individual-needshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1327364098-1736816264767-compressed.jpg) _By_ **_Graham Hayward,_** _Chief Operating Officer,_ [_Housing Hand_](https://housinghand.co.uk/) The private rented sector accounts for 4.4 million households, according to the 2020/21 English Housing Survey. That’s 19% of people in the UK renting privately, many of whom – the so-called Generation Rent – are unable to buy their own home. Private sector renters have had a rough ride over the past couple of [years](https://www.financedigest.com/2020-the-paradoxical-year-that-has-reshaped-the-future-of-motor-insurance-and-related-sectors.html "2020: The paradoxical year that has reshaped the future of motor insurance and related sectors") and there is scope for the sector to better support them. This can, in part, be achieved through appropriate [insurance products](https://www.financedigest.com/two-thirds-of-consumers-would-prefer-to-deal-with-a-single-provider-for-insurance-products.html "Two-thirds of consumers would prefer to deal with a single provider for insurance products"), as I’ll discuss shortly, but let’s first take a quick look at some of the issues that renters are currently facing. When the renter moves properties, they are expected to have two deposits in play, as there’s an overlap between paying a new deposit and receiving their current one back. This has always been the challenge with a cash deposit. And it’s precisely the reason that we’re [seeing more products on the market](https://www.financedigest.com/the-avocado-oil-market-to-see-through-explicit-advancements.html "The Avocado Oil Market To See Through Explicit Advancements") focused on deposit-less renting, which can support renters to move from one property to another more easily. Depending on the nature of the tenancy, the [financial burden may not just be limited to the need](https://www.financedigest.com/the-financial-services-industry-needs-to-get-serious-about-cyber-security-in-the-covid-19-era.html "The financial services industry needs to get serious about cyber security in the Covid-19 era") to find two deposits. In houses in multiple occupation (HMOs), for example, joint and several tenancies carry their own risks. Many renters – and their guarantors – are unaware that even if they pay their own rent on time, they may be liable to make up the portion of the rent owed by any other non-paying housemates. There’s plenty of scope to educate renters about the pitfalls here and [support them to find products and services](https://www.financedigest.com/bny-mellon-strengthens-support-for-treasury-services-clients-in-germany-with-appointment-of-gungor-taner.html "BNY MELLON STRENGTHENS SUPPORT FOR TREASURY SERVICES CLIENTS IN GERMANY WITH APPOINTMENT OF GÜNGÖR TANER") that will mitigate their liability. Another issue is the increasing number of people who are failing the referencing process. The process can be stressful for those going through it and it can take up valuable time – a major [source of frustration to renters looking to secure](https://www.financedigest.com/exclusive-amazon-to-secure-unconditional-eu-approval-for-8-5-billion-mgm-buy-sources.html "Exclusive-Amazon to secure unconditional EU approval for .5 billion MGM buy – sources") the property they want on a short timeline. Clearly, there is a space here for an insurance product to fill. Actually, there’s room for several products, as we can see when we examine the available options. This means that tenants [need to be careful about which product or service](https://www.financedigest.com/top-5-seo-services-you-need-to-succeed-in-2022.html "Top 5 SEO Services You Need To Succeed In 2022") they choose. Some, for example, won’t pay out until a tenancy ends, which can be too late to [meet the need](https://www.financedigest.com/institutions-need-to-consider-spreadsheet-management-to-meet-the-pras-latest-stress-testingexpectations.html "Institutions Need to Consider Spreadsheet Management to Meet the PRA’s Latest Stress Testing Expectations") in question. For tenants in need of a guarantor, using a rental guarantor [service provides](https://www.financedigest.com/nets-acquires-polish-online-payment-service-providers-dotpay-ecard-from-mci-capital.html "Nets acquires Polish online payment service providers Dotpay/eCard from MCI Capital") peace of mind, as well as practical assistance. As well as helping tenants to tick all the right boxes during referencing, a guarantor [service can provide other benefits](https://www.financedigest.com/what-are-the-benefits-of-guest-post-services-for-seo-agencies.html "What are the Benefits of Guest Post Services for SEO Agencies"). Some services, for example, allow renters to obtain pre-validation, which [means they have the commitment](https://www.financedigest.com/the-pandemic-means-that-its-time-to-double-down-on-our-commitment-wellbeing-and-employee-engagement.html "The pandemic means that it’s time to double down on our commitment wellbeing and employee engagement") of having a guarantor _before_ they find a property. This [mitigates the risk](https://www.financedigest.com/how-wfo-can-help-mitigate-the-risk-of-illegal-staff-conduct.html "How WFO Can Help Mitigate the Risk of Illegal Staff Conduct") of losing a property due to delays in the referencing process. A rental guarantor service is about more than convenience, though. Using one means that the tenant has a backup, should they become unable to pay their rent. This means they [don’t risk their credit score](https://www.financedigest.com/12-things-that-dont-hurt-your-credit-score.html "12 Things That Don’t Hurt Your Credit Score") or the potential of eviction the moment they run into financial difficulty. From the landlord’s perspective, it also provides the reassurance that they’re not going to end up out of pocket. There are also an increasing number of alternative deposit and deposit-less services on the market. These vary widely in terms of [costs and how they operate](https://www.financedigest.com/can-cfos-balance-the-books-with-rising-operating-costs.html "Can CFOs balance the books with rising operating costs?"), as well as the amounts that they will cover, so renters need to shop around to ensure they find the right product to meet their needs. With an alternative deposit or deposit-less service organised, renters can enjoy a far more manageable [situation than trying to have two deposits on the go at the same time](https://www.financedigest.com/the-pensions-deficit-abyss-the-time-to-review-your-situation-is-now.html "The pensions deficit abyss – the time to review your situation is now"). Other [services are specifically available for renters living](https://www.financedigest.com/six-securities-services-goes-live-with-its-trade-repository-to-report-derivatives-transactions-in-switzerland.html "SIX Securities Services goes live with its trade repository to report derivatives transactions in Switzerland") in HMOs. Tenants who have [signed joint and several contracts](https://www.financedigest.com/axion-swiss-bank-and-avaloq-sign-long-term-contract-for-bpo-services.html "Axion Swiss Bank and Avaloq sign long-term contract for BPO services"), for example, can sign up to services that limit their liability to only cover their share of the rent, not their housemates’ shares. Meanwhile, many providers of property-related services also cover contents and valuables as part of the rent, most notably in the rapidly growing [Build to Rent](https://www.financedigest.com/proper-pristine-pads-not-pods-tipi-dispels-the-myths-of-build-to-rent.html "PROPER, PRISTINE PADS, NOT PODS- TIPI DISPELS THE MYTHS OF BUILD TO RENT") sector and the purpose-built student accommodation sector. With the average UK [house price](https://www.financedigest.com/uk-house-prices-stabilise-after-four-month-fall-halifax-says.html "UK house prices stabilise after four-month fall, Halifax says") having recently hit eight times the average salary, and an eye-watering inflation surge pushing up the cost of living, the proportion of households renting privately is unlikely to fall anytime soon. In fact, it’s likely to do [quite the opposite](https://www.financedigest.com/nothing-cryptic-about-new-crypto-start-up-quite-the-opposite.html "Nothing cryptic about new crypto start-up – quite the opposite           "). As such, rental guarantor services and depositless renting services now fit firmly into the category of [insurances about which every individual needs](https://www.financedigest.com/breaking-down-the-types-of-insurance-you-need.html "Breaking Down the Types of Insurance You Need") to know. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---