Deposit replacement scheme

Has anyone used a deposit replacement scheme as a landlord, what are your views?
am i right in thinking that the tenant pays a week worth of rent split over several months which is nonrefundable- and this covers for upto 12 month rent for the landlord? this 1 week rent is non refundable to the tenant. The 1 week rent also does not pay for any damages? am i right?

The way it worked through the agent that I used to use was that the tenant paid a monthly premium throughout their whole tenancy which gave 8 weeks worth of rent coverage in lieu of deposit. But that was before deposits were capped, so it may be different now.

thanks Cath
it is still in vogue now, for instance mashroom is offering 3 months rent. But I am more inclined to do a insured deposit, having learnt a lesson with custodial option. If they can’t pay the deposit 5 weeks then my guess is their affordability and outgoings are unreliable anyway.
May be rent guarantee insurance us a better option on top. I don’t need to think of rent guarantee for small property but fir high rent yielding ones it may offer some comfort.
Worth to hear from landlords what experiences they have with such insurances.

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