What is HMO Insurance?
HMO means ‘House in Multiple Occupations’. It is specifically designed to insure properties that have more than 3 unrelated people living within it.
Typically, each bedroom is let out separately but those who are renting there will share a kitchen, bathroom and living room.
Essentially it is a landlords insurance policy but a little more complex. A student let is a prime example of a typical HMO property.
Do I need a HMO Policy?
Property insurance is not actually a legal requirement. If you have a mortgage on the premises though then it is extremely likely that you be required to have one within the terms of agreement.
If the premises you rent is a block of flats, then this does not require a HMO policy but instead a specific block of flats insurance policy.
When you rent a property though, it is quite common for the renters to not share the same respect for the property as what you do. Because of this, it is always recommended you consider a HMO landlord insurance policy.
What is covered by HMO Property Insurance?
Like most property insurance policies, the cost to rebuild your property will be covered against things such as fire, floor, subsidence and any other aspects listed on your policy.
Covered under buildings insurance will be things like the walls, floors, ceilings, bathrooms and kitchens.
Landlords Contents Cover
The contents cover aspect of your policy will cover things such as the carpets or any fixtures and fittings not protected under the buildings cover.
Quite often HMO landlords provide accommodation with things such as TV’s and beds already provided, these items can also fall under contents insurance.
Legal cover is there to cover you against claims arising from your tenants. Should a tenant injure themselves through your neglect, legal cover can be there to step in.