Over recent years, the House in Multiple Occupancy (HMO) rental market has grown substantially. If you’re letting a house to multiple tenants who aren’t a family or in a relationship, it can add extra complications and carry extra risk. Which is why its so important to get comprehensive HMO Landlord Insurance.
The added complications are the one of the main reasons for a purchaser who wants to buy an HMO will frequently have to obtain a specialist mortgage, particularly if the property is to be let to students or people on benefits. The same applies to insurance. In the West Midlands, high numbers of students mean there is a large number of HMO properties in Birmingham and across the region.
If you’re looking for Birmingham property insurance for your HMO premises then what are the advantages of opting for specialist HMO insurance?
How do you define an HMO?
The government definition of an HMO is a property that’s tenanted to at least three different people from more than one household. These tenants will be sharing toilet, bathroom or kitchen facilities. If your property has five or more tenants from more than one household who are sharing facilities, this qualifies it as a large HMO.
If this is the case you may find that normal landlord insurance may not be sufficient for your needs, potentially leaving you exposed should you need to make a claim.
What is specialist HMO Landlord Insurance?
HMO insurance is cover that’s tailored to the specific needs of landlords with HMO lets. It takes account of some of the particular risks that are associated with multiple occupancy lets and gives you the confidence that should the worse happen, then your insurance policy will have you covered. Bespoke protection for HMO landlords helps to protect your investment.
Why do you need specialist HMO Landlord Insurance?
Specialist HMO Landlord Insurance ensures that the potential risks associated with HMO property are covered by your insurance policy. Some of the main risks associated with HMO property relate to fire, flooding, loss of rental income, and malicious tenant damage. Making sure you have the appropriate level of cover in place reduces the risk of a landlord being landed with a significant bill.
Even if your property is not a mandatory licensed HMO, you will still need specialist HMO insurance if you have multiple persons from different households living in your accommodation. There is a potentially increased risk of damage to the property and contents, whether this is caused by accident or maliciously. There is also the increased risk of someone claiming against
the landlord for any loss, damage or injury that’s caused by living or being on your premises. Multiple occupants from different households sharing a property increases the number of variables that can lead to damage or disputes.
Specialist HMO cover from Falcon Insurance
Based in the heart of Birmingham City, Falcon Insurance specialise in providing a wide range of insurance products to landlords and businesses alike. Our bespoke insurance for HMO landlords can ensure that you’re covered for all the main risks associated with letting HMO properties.
Call 0121 679 7265 or contact us online for a free quote or check our our dedicated page here HMO Landlord Insurance.