Cant get insured anywhere for an HMO (Homes in Multiple Occupation) property! Everyone driving you mad refusing to insure your new investment! Why is it so difficult you ask? Well the risk is certainly there with a house that has been transformed to home multiple occupants. Well put it this way, some tenants are ideal i.e. professional tenant, and some tenants not so ideal that come with a greater risk tag i.e. students and then there is dss tenants who again with a lot of insurers refuse to insure.
Within an HMO property you can have a dss referral and non-referral. The difference is in the contract. You can either have a dss tenant with a direct contact between themselves and the insured or between the tenant and the council. A lot of insurers do not like it when the landlord is out of control of the tenant type as they do not get to choose who they home in their HMO property, therefore adding an element of risk.
There is also the factor of cooking that puts of insurers when it come to HMO properties. Does the property have a designated kitchen area they ask, or do they just have an electric hob stirring on the side next to a microwave and fridge?
Just imagine the fire risk of having an exposed electric hob just sitting there. It could easily be knocked off by someone late at night, fall onto the carpet that is then set alight and proceeds to cause a mass fire.
This is why when setting up an HMO property you must think what is going to be safe and what is not by having an integrated kitchen in a room, that’s if there is not a communal kitchen then it is imperative that it is all installed in a professional manner.
This way the insurer will like the risk and your HMO insurance or home of multiple occupation insurance will endeavor to be much more affordable.
