Tenants & Landlords - FAQs

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FAQs - General

Client Money Protection Insurance (CMPI) is a distinct insurance that protects the money of landlords and tenants against theft or misappropriation by the owners of the letting agent whilst it is in their custody or control. These monies are frequently tenant’s deposits and landlord’s rental payments but can also include monies held for repairs and maintenance to the property and other such circumstances. CMPI is purchased by the letting agent for the benefit of his clients (landlord or tenant). In the event of theft or misappropriation of these monies by the owners of the business, landlords and tenants have a route of redress against the letting agent by contacting the ‘policy issuing’ body/organisation and claiming against the policy. If a genuine claim is accepted, the ‘body/organisation’ will recompense the landlord or tenant and seek recovery from the letting agent or its owners.

Traditionally, the provision of CMP has been made available through letting agent trade bodies or organisations such as RICS, ARLA, UKALA or NALS. These organisations provide CMP to their members, publicise the benefits to the wider community, and deal with any claims made against the scheme. Without the inclusion of this independent entity within the CMP sale process, the landlord and tenant risks not knowing about the existence of CMP, the terms and conditions of the insurance, who to contact and how to make a claim – especially if the agent has gone into liquidation and is un-contactable.

No, CMP does not act on behalf of the letting agent. It is an independent membership body that provides the protection of client money whilst held by its members and the Scheme insures its liability for the payment of any claims.

Complaints can only be made about the process or service provided by CMP. The majority of complaints will be dealt with within 5 workings days. Please see the CMP Complaints Procedure.