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Houses of Multiple Occupancy
No limit on number of HMO occupants
Bedsits also acceptable
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All types of property considered including mixed commercial
Excellent cover whilst property is unoccupied
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HMO’s (which stands for House in Multiple Occupation) are popular. More people than ever may be inclined to share such accommodation as rents and house prices continue to escalate and the arrangement might suit students in particular.
That means that this type of property investment may be attractive to you if you own – or are considering converting an existing property to - an HMO.
What you do need to be aware of, however, is that when buying buildings insurance neither traditional residential home insurance nor landlords insurance will suffice. In fact, if you use either of these types of insurance to protect your HMO, the cover may typically be invalid – leaving you and your investment financially vulnerable.
But first, what defines an HMO?
A House in Multiple Occupation is:
- a property that is occupied by three or more tenants comprising more than one separate household but who share essential facilities such as a kitchen and/or bathroom;
- a property which is more than three storeys in height and which houses more than five people comprising separate households.
Why do you need specialist HMO insurance cover?
HMO insurance also falls into a special category. It is certainly not the same as the type of standard building and contents insurance used by an owner occupier to protect his or her home. But neither is it the standard form of landlord insurance suitable for wholly self-contained rental accommodation.
By definition, it is a property in multiple occupation, with facilities that are shared by several households, meaning lots of footfall.
These special circumstances result in an insurer’s belief that HMOs represent increased risks when it comes to providing the necessary cover for landlords - especially in common areas and in the use of shared facilities, for example, where there may be a greater risk of damage to the property and its contents, whether that damage is caused maliciously or otherwise.
Because the risks are higher, some insurers may decline your application for HMO insurance altogether and those that do accept it may be likely to charge unusually high premiums (compared to those for standard buy to let property, for example).
If you are thinking about buying an HMO or converting your existing buy to let property into an HMO, therefore, it is important to remember that you need specialist HMO insurance that recognises the particular risks involved, yet provides you the cover you need at a competitive rate.
Why choose us at UKinsuranceNET?
UKinsuranceNET’s HMO insurance combines just this need for the specialist cover needed by the HMO landlord, yet at a competitive market rate.
By using our expertise and experience in this particular niche of the market for property insurance, we are familiar with the wider risks of property in multiple occupation, the landlord’s need to protect against those risks, and the necessity for maintaining rental profitability by keeping insurance premiums within acceptable bounds.
If you are already the landlord of an HMO, or are thinking of becoming one, therefore, you might first want to talk to us here at UKinsuranceNET before arranging the necessary HMO landlord insurance.
* 75% of all customers receiving an online quote in May 2017 could have obtained a cheaper quote over the phone, based on the information they provided