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Cheap HMO Insurance

March 01, 2016

Need competitive and Cheap HMO Insurance? We are insuring a lot of HMO’s or “houses of multiple occupation” at present, as this seems to be a new trend with property owners.

Landlords will purchase a house then refurbish or alter it in, line with government requirements (details below), and let them out to working people, students, or people claiming benefit. However, we are being told over and over again that Cheap HMO Insurance is hard to find.

Why Choose Rigsby for Cheap HMO Insurance?

Well it isn’t hard to find insurance for HMO’s any longer. Rigsby Landlord Insurance have been working hard with specialist insurers to make obtaining HMO Insurance just as easy as any another landlord Insurance risk that Rigsby provide.

Competitive and more importantly Cheap HMO Insurance is one of many product types Rigsby Landlord Insurance can cover with competitive premiums and fantastic coverage. Specifically, when the property is unoccupied undergoing refurbishment or alteration and then becomes occupied as HMO.

Here is a snippet from an article we read recently that may detail why landlords or property owners are investing in HMO’s:

Recipe for success: Jim Haliburton buys unloved two- and three-bed terraces typically costing £60,000 to £80,000 each, for cash. He spends £20,000-£40,000 converting them into five- or six-bedroom HMO, with each room typically letting for £280 per month. For a six-bed house, that works out as an annual income of £20,000. With that sort of revenue, the property is worth £200,000 to another investor-buyer.

Click the link for more on this article from the Daily Telegraph.

What Constitutes as an HMO?

Here is some information we pulled off the Gov.uk site with some very helpful links

Your home is a House in Multiple Occupation (HMO) if both of the following apply:

  • at least 3 tenants live there, forming more than 1 household
  • you share toilet, bathroom or kitchen facilities with other tenants

Your home is a large HMO if all of the following apply:

  • it’s at least 3 storeys high
  • at least 5 tenants live there, forming more than 1 household
  • you share toilet, bathroom or kitchen facilities with other tenants

A household is either a single person or members of the same family who live together. A family includes people who are:

  • married or living together – including people in same-sex relationships
  • relatives or half-relatives, eg grandparents, aunts, uncles, siblings
  • step-parents and step-children

Standards, obligations and how to complain

If you live in a large HMO, your landlord must meet certain standards and obligations. Find out more about HMOs from Shelter.

Contact your local council to report hazards in your HMO. The council is responsible for enforcing HMO standards and can make a landlord take action to correct any problems.

Reclaiming rent

All large HMOs need a licence from the local council.

You can apply to the Residential Property Tribunal to reclaim rent if your landlord has been prosecuted by the council for running an unlicensed HMO.

Fill in form RR02 and send it to your regional tribunal office. The addresses are on the last page of the form.

We hope you have found this useful and if you need a quote for HMO Insurance Call 0845 475 3456 or click get a quote under the landlord insurance tab above for a quote for HMO Insurance. Haven’t got the time? Email us at newbusiness@rigsbyinsurance.com.

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