Groupama will provide insurance for landlords housing asylum seekers, after previously stating they would be excluded from its policies.

The move follows reports that Homelet, a landlord insurance scheme underwritten by Groupama, had written to policyholders renewing landlords' cover, warning it was unable to provide cover for properties occupied by asylum seekers. Homelet's scheme covers property let on shorthold tenancies, which means the scheme is not generally available to occupiers of a "transient nature".

But a joint statement from Homelet and Groupama said in some select cases cover for properties let by asylum seekers would be available.