HMO Landlord Insurance

Houses in multiple occupation (HMOs) 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 an HMO?

A house in multiple occupation (HMO) is defined by the UK government as the following:

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

OR

• At least five tenants live there, forming more than one household.
• Tenants share a 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, you should always consult with your local authority/council for clarification. Different local authorities have differing definitions for licensing purposes.

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 buildings 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;
• May charge unusually high premiums (compared to those for a 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. However 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.

Why is HMO insurance different to other property insurance policies?

If you’re are thinking about buying an HMO or converting your existing buy-to-let property into an HMO, it’s 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 HMO landlord insurance can be tailored to meet your unique needs as a landlord of a house in multiple occupation, 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, you will typically need to register the address as an HMO and get an HMO licence. Failure to do so could jeopardise your HMO insurance cover. Please ensure you check this with you local authority.

What is the difference between an HMO and a bedsit?

A bedsit is typically a self-contained unit (for example, it may have 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 there 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 landlord’s contents with our HMO insurance. If you would prefer to discuss this over the phone, please call us on 01325 346 328 and we’d be delighted to help.

Why choose UKinsuranceNET?

UKinsuranceNET’s HMO insurance combines the specialist cover needed by the HMO landlord, yet at a competitive market rate.

If you are already the landlord of an HMO or are thinking of becoming one, you might first want to talk to us here at UKinsuranceNET before arranging the necessary HMO landlord insurance.