HMO Insurance

Benefits

• No limit on number of HMO occupants
• Bedsits also acceptable
• Buy or manage your policy online
• All types of property considered including mixed commercial
• Up to 90 days unrestricted cover whilst property is unoccupied
• Single policy for property portfolios

Houses in multiple occupancy

 

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 particularly suit students and working professionals.

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 defines a HMO?

An house in multiple occupation (HMO) can be either a property where:

 

• at least three tenants live there, forming more than one household;
• tenants share toilet, bathroom or there are shared kitchen facilities.

OR

• at least five tenants live there, forming more than one household;
• tenants share toilet, bathroom or there are shared kitchen facilities.

 

A household is either a single person or members of the same family who live together. In an HMO, there are separate households.

 

If you are unsure as to whether your property is an HMO and whether you need an HMO licence, then contact your local authority/council for clarification.

 

Why do you need specialist HMO insurance cover?

HMO landlord insurance falls into a special category. It is certainly not the same as the 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.

It is a property in multiple occupation, with facilities that are shared by several households. This means lots of footfall where there is:

 

• potentially, a higher risk of damage to the property and/or contents whether caused maliciously or otherwise;
• a greater chance of someone claiming against you for loss, damage or injury caused by being on your premises.

 

Because HMOs may represent increased risks when it comes to providing the necessary cover for landlords, some insurers:

 

• may decline your application for HMO insurance altogether;
• who do provide HMO landlord insurance may be likely to charge unusually high premiums (compared to those for standard buy to let property, for example).

 

At UKinsuranceNET, we believe we offer appropriate, cost-effective HMO insurance that provides the unique elements of protection you need.

 

What does HMO insurance cover?

Product features, benefits, terms and conditions may vary among HMO insurance policies and providers but generally, the cover may typically include:

 

• HMO buildings insurance – to protect the structure and fabric of the building - including fixtures and fittings – against damage caused by fire, flood, theft, and other hazards;
• landlord contents insurance – protects any contents in your HMO including those in communal areas;
• landlord liability insurance – if someone is injured or suffers a loss on your premises, landlord liability insurance helps cover legal costs and compensation;
• unoccupied property insurance - for times when the property is temporarily empty (such as when student tenants are out of term time).

 

Additional options (either as standard part of your cover or as an add-on) are also available such as:

 

• cover for malicious damage;
• accidental damage;
• alternative accommodation (for your tenants if an insured event means the property is temporarily uninhabitable).

 

Please note that claim limits and terms apply, so check with your insurance provider as to what these are.

 

Can I use landlord insurance or home insurance for an HMO?

When buying HMO 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.

 

Why is HMO insurance different to other property insurance policies?

 If you are thinking about buying an HMO or converting your existing buy to let property into an HMO, it is important to remember that you need specialist HMO landlord insurance that recognises the risks involved - yet provides you with the cover you need at a competitive rate.

 

Our landlords’ HMO insurance can be tailored to meet your unique needs as a landlord of a house in multiple occupancy, such as:

 

• no limit on the number of unrelated tenants;
• unoccupied property options;
• mixed commercial and residential lets.

 

If your property is deemed an HMO, typically you will need to register the address as an HMO and get an HMO licence. Failure to do so could jeopardise your HMO insurance cover.

 

 What is the difference between an HMO and a bedsit?

A bedsit is typically a self-contained unit (e.g., it may have a single electric ring or kettle) within a building. An HMO has at least three people living in the building each from different households and who share facilities such as the kitchen and bathroom.

 

At UKinsuranceNET we offer both HMO insurance and bedsit insurance.

 

Are they any restrictions on the type of tenant I can let to?

 With HMO property insurance from UKinsuranceNET, we can consider all tenant types, from students to asylum seekers. Do note, however, that some other insurance providers may have restrictions as to whom you can let to.

 

Can I buy HMO buildings and contents cover?

 Yes, we can offer cover for both the buildings, communal areas and landlords contents with our HMO insurance. If you are unsure as to your requirements, please call us on 01325 346 328, and we'd be delighted to help.

 

Why choose us at UKinsuranceNET?

 UKinsuranceNET’s HMO insurance combines the need for the specialist cover needed by the HMO landlord, yet at what we believe is a competitive market rate.

 

By using our expertise and experience in this niche of the market for property insurance, we are familiar with the broader 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.