House of multiple occupancies (HMO) landlord insurances provides specialist protection for properties that are rented out to various households, differing from standard buy-to-let policies in that this will cover fire, flood, and tenant malicious damage as well as fire risks.
HMOs are properties rented out to at least three people who belong to multiple households and who share facilities such as kitchens and bathrooms – which requires them to be licensed by your local authority.
Buildings cover
HMO (House of Multiple Occupancy) landlord insurance provides coverage for properties rented to multiple people who do not belong to one household. Policies typically include building cover, contents cover, liability insurance, and unoccupied property coverage – many mortgage providers require their landlords to acquire this type of policy as a requirement for lending money.
HMO properties in England and Wales may differ slightly, but generally speaking, they involve properties that are rented to three or more occupants who do not belong to one family, sharing amenities like bathrooms and kitchens. Larger HMOs usually refer to properties that house five or more tenants from separate households – including student buy-to-lets, which may also qualify as HMO properties.
HMO landlords need to ensure they have adequate HMO landlord insurance in place since these properties often carry more risks than regular buy-to-let homes, and standard landlords’ policies may not offer adequate protection.
Coeus Insurance can assist in finding the ideal HMO landlord insurance package to protect it. Our expert brokers possess years of experience and can see you an insurance policy that covers both traditional risks associated with an HMO property as well as specific ones related to HMO properties.
At InsureandGo, we’ll take the time to understand your individual needs and craft a tailored solution that’s tailor-made just for you. We provide a number of coverage options including building cover and malicious damage cover – which are designed to safeguard investments against unexpected costs of repair and replacement; alternative accommodation cover, and unoccupied property cover (critical for HMOs that remain vacant between lets); unoccupied property coverage can also be included as necessary.
Contents cover
HMO properties are substantial investments, so protecting them through adequate coverage is of the utmost importance. Deliberating all of your HMO property’s needs before selecting an insurance provider and policy tailored specifically for you a vital step toward financial security.
Contents cover is an optional add-on that compensates you for any damages to possessions within your buy-to-let property caused by an insured event, including furniture like carpets and curtains as well as electrical goods such as refrigerators or microwaves you provide communally. Unfortunately, it does not cover tenants’ personal belongings, which should be covered separately through tenants’ contents insurance policies.
Your HMO policy can also offer other valuable extras, including loss of rent cover – which reimburses you in the event that tenants leave due to an insured event – and alternative accommodation cover, which covers costs related to housing them somewhere else. Furthermore, personal possessions coverage protects such things as wallets/purses, jewelry, or pedal cycles, as well as laptops and mobile phones, from unexpected damages or loss.
Liability cover
HMO insurance policies are tailored specifically to address the unique risks that come with houses with multiple occupancy. While standard buy-to-let procedures might not offer adequate protection, HMO policies recognize there will likely be greater footfall at shared facilities and that each occupant may have unique priorities when compared to other forms of rental agreements.
Houses of multiple occupancy can vary by country; in England and Wales, a large HMO typically involves at least three tenants from separate households sharing facilities such as bathrooms and kitchens. Students purchasing buy-to-lets usually fall into this category, as do landlords renting rooms out to non-family members.
Be mindful that a standard landlord policy won’t offer adequate protection for HMO properties as insurers tend to view them as high-risk due to increased footfall in common areas and shared facilities that could cause more damage than ever to both building structure and contents.
HMO landlords should carefully consider various insurance coverage options when running HMO properties, including buildings and contents cover, property owner liability coverage, loss of rent cover, and alternative accommodation cover. Buildings and contents insurance will cover repairs or replacement resulting from insured events like fire or flooding; property owner liability protects in the event that one of your tenants or visitors becomes injured on your property; while loss of rent cover reimburses any lost income if your HMO becomes inhabitable due to something like fire.
Landlords should consider taking out an individual personal accident and legal expenses policy in addition to their household policy, mainly if they spend more time at their properties than at home.
Unoccupied property cover
House of multiple occupancy (HMO) landlord insurance covers properties rented to multiple households who share facilities, such as kitchens and bathrooms, from one property. This policy usually provides cover for buildings, contents and liability exposure – as well as alternative accommodation cover in case your rental income drops due to an insured event – however some HMO policies also cover lost rental income from rental losses due to uninhabitability caused by events insured against. Since HMOs differ from regular buy-to-let properties in that special permits might be needed before renting them out – check your coverage options carefully if renting multiple occupied rented rented units!
Specialist landlord HMO insurance can offer protection from the unique risks involved with renting houses in multiple occupations. Properties rented to multiple occupants are more susceptible to wear and tear and damage from tenants not from one household; for instance, student buy-to-lets may host parties more frequently which lead to accidental damages than traditional buy-to-lets; to mitigate this risk properly. You need specialist landlord HMO coverage with appropriate levels of cover tailored specifically to your investment portfolio. Specialist HMO landlord insurance provides adequate cover.
HMO landlord policies generally include all of the standard covers, but you should ensure they meet your individual needs – such as number of occupants and whether or not renting to students or professionals. Additional extras such as alternative accommodation and tenant malicious damage coverage may be necessary depending on your particular requirements.
Consideration should also be given to the location of your HMO, as this can have a significant impact on its premiums. An area with high crime rates might necessitate more comprehensive coverage than another; compare various insurers before selecting one that meets all your requirements.
HMO landlord insurance market is expanding rapidly, and HMO landlords must invest in a specialized policy. Because many traditional landlord policies exclude HMOs from coverage, you could risk your investment if not adequately insured. You can find a reputable insurer offering HMO landlord policies online or over the phone and they will explain each one before helping you choose one best suited to your business needs.