If you own a property with a number of rent-able rooms, we understand that it can be financially prudent or even more convenient to let the property to the local authority, housing association, local government or even a charity.
Rental agreements such as this are becoming ever more frequent in the HMO/multi let property market, and though it takes the strain and stress out of finding a tenant for each rent-able room, this stress is then passed on to finding an appropriate insurance policy for your property.
The problems you will occur with insurers is that the tenancy agreements of the tenants will not be between the landlord and the tenant, so even if you find an insurance provider willing to entertain the possibility of providing a quotation, chances are they will look to exclude accidental damage cover.
Secondly advising any insurance provider that the property is let to “local authority” (usually the applicable option for these risks) only really covers the local authority (charity etc.) to let the property to your standard DSS tenants, those on unemployed benefits, and it is the landlord’s responsibility to advise the insurer exactly what type of tenants will be occupying the property.
Risks Involves
The majority of risks we see in which a HMO property is let to a local authority house the likes of:
- Homeless – rehabilitating and training to be independent once again
- Recovering alcoholics and drug addicts – rehabilitating and training to be independent once again
- Domestic violence victims
- Individuals whose houses have be repossessed
- Ex-offenders
- Young adult programmes for homeless adults – training, guidance and education
Majority if not all of the above within the DSS bracket would need to be referred to any insurer before proceeding with cover to ensure they cover this tenant type, and in most cases this usually results in a decline.
If your HMO property is let to nonstandard DSS tenants, then luckily you’re on the right broker’s website, as we can insure all of the above and more, and with the facility to include cover types such as accidental damage and malicious damage.
Contact our Let Property team today for your HMO DSS let property quotation.
