We are receiving more quotes daily on HMO insurance and are increasingly satisfying our clients’ needs by producing competitive rates with full cover.
Whether it is an unoccupied property which will undergo works to become an HMO or if it is an existing home of multiple occupancy, we can get you a quote within 5 minutes, or if it is a bit more unique like a converted hotel or a converted care home, we can take the details and come back to you within 24 hours.
As ever when dealing with all building insurance policies it is crucial to get the rebuild value right.
Do you understand fully the difference between the declared value and building sum insured with your HMO insurance? If you don’t get this right it could have a real impact on your policy if you were to claim.
Declared Value :
This is what it would cost to rebuild the property including all fixtures and fittings and all property you are responsible for on your parameter. A lot of clients just think the rebuild is the purchase price of the property, but this is incorrect as the purchase price includes the cost of the land which is not part of the rebuild figure for the buildings insurance for a home of multiple occupancy.
The Declared Value is then subjected to Day One Average or another term used is Day One Uplift. This new enhanced value is called a Building Sum Insured.
Further advice and help can be found along with a household rebuilding calculator on the Association of British Insurers website.
A recent survey indicates that the majority of HMO houses in Britain are underestimating the value of their buildings insurance, and as many as one in five have no contents cover at all. These worrying statistics show that a huge sum of money of our home contents is left exposed. If your insurer discovers that your home contents are worth more than they are insured for, you will only be paid a relative proportion of your claim. In some cases, severe underestimations could even cause an insurer to refuse to pay out completely.
So when insuring an HMO make sure all your figures are correct and you are not going on guess work, if you do there could be a huge price to pay, just to save a few pounds !!!
