What is HMO insurance..? HMO insurance (house of multiple occupancies) is no different from standard property owners insurance in what cover is provided.
HMO insurance products are based on a standard landlord insurance policy but have been designed specifically to cater to the requirements of a property that is let out to multiple occupants.
What is different about insurance for HMO properties?
Not all insurers are looking to ensure this type of property and therefore it can restrict your choice and number of insurers who are willing to quote.
HMO insurance is different from standard landlord insurance as the scenarios can vary widely. A property let on a single tenancy basis will typically have one household, whereas an HMO can have multiple households. In some properties, the number of households can run into double figures.
With HMOs the insurance risk differs as there can be shared facilities, cooking in the room, communal areas, more visitors than normal. Due to all these factors, a thorough understanding of your HMO property is required with cover being tailored to your specific needs
If I don’t receive rent for a period of time, can I claim for this through our HMO insurance policy?
If it’s just that your tenant(s) have stopped paying rent then the answer is no, however, if the property has suffered material damage and is deemed uninhabitable following an insured event, then yes provided there was a tenancy agreement in place at the time of the loss.
A standard HMO policy doesn’t cover tenants defaulting, however, you can purchase an additional product that provides cover per tenancy for tenants defaulting. This starts at £75 per tenancy but reduces the more tenancies you purchase it for.
If my tenant(s) maliciously damages my property can I claim?
If your policy provides malicious damage caused by tenants cover, then yes you can claim up to the limit stated in your policy schedule or in the policy wording.
Not all HMO insurances cover malicious damage, however, if this is an important requirement it may be possible to purchase this at an additional cost.
Can I pay HMO insurance in instalments?
You can pay your HMO insurance through monthly direct debit payments or all pay annually
Can I cover students and DSS tenants in an HMO insurance policy?
Yes, cover is available to most tenant types, however, there may be a variation in premium dependent on who the tenants are.
Can you provide rent guarantee insurance for HMOs?
Yes, rent guarantee insurance is available per tenancy. This provides cover for rental defaults and eviction of tenant(s)