HMO Insurance

HMO Insurance - what is an HMO and what is HMO Insurance?

What is an HMO?

HMO, short for ‘House in Multiple Occupancy’ is when a residential property is occupied by at least 3 (unrelated) tenants, with either a shared toilet, bathroom or kitchen facilities.

If the property is occupied by 5 or more (unrelated) tenants with either a shared toilet, bathroom or kitchen facilities, then this is classed as a large HMO.

Large HMO’s require a licence from the local council, and must comply with certain standards and regulations.

An HMO could be a shared house, or a shared flat.

What are the obligations required of an HMO landlord?

If the property is a large HMO, the landlords is required to make sure that:

• there are enough rubbish bins
• the property is not overcrowded
• electrics are checked every 5 years
• yearly gas safety checks are carried out
• shared areas and facilities are clean and in good repair
• fire safety measures are in place, including working smoke alarms
• there are enough facilities for cooking and washing

Note, the above obligations may also apply to smaller HMO’s and your local council will provide further guidance on this.

What is HMO Insurance?

If your property is classed as an HMO then it’s important your insurers are aware. Many standard ‘buy-to-let landlord policies’ are designed for single-dwelling houses and would not cover an HMO.

HMO Insurance would provide the following covers:

• Buildings cover, including accidental damage and malicious damage (by tenants)
• Contents cover, including accidental damage and malicious damage (by tenants)
• Loss of Rent cover – this would provide cover if the property became uninhabitable due to an insured peril, for example a fire, meaning the tenants had to move out of the property.
• Public Liability (also referred to as Landlords’ Liability) – this would provide cover should injury or loss arise to third parties, including tenants, due to your property. An example would be if a tenant submitted a claim against the landlord due to an injury sustained from tripping over a loose carpet.
• Legal Expenses (optional cover) – this would provide defence / legal costs including costs associated with tenants’ evictions, boundary disputes etc.
• Rent Guarantee Cover – this would provide cover if tenants default on rent payments, offering financial protection for the landlord.

If you would like to discuss your HMO insurance or would like a quote please contact us on 01924 871111 or email insurance@wtj.co.uk or alternatively leave your details below and one of our staff will make contact with you.