Insurance to cover HMO fire?

Insurance to cover HMO fire?

0:01 AM, 14th April 2025, About a month ago 4

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As the freeholder of a block and owner of 2/5ths of it, I’m responsible for arranging insurance. My issue is that 3/5ths of the flats are rented, and the maisonette I own (2/5ths) is an HMO.

A clause on the insurance policy says risks are not covered. Any fire caused by cooking in a room other than the kitchen or an area that adheres to BS2005.

I have no way to enforce this, as what happens inside another leasehold property owned by someone else is beyond my control.

We all know to expect the unexpected!

Here’s a scenario: A hospital night worker enjoys fishing. Comes back very late from work, grabs his fish out of the fridge.

Goes up to his room. In order not to annoy other tenants at 4 am cooks up his fish on his camping stove in his room.

He falls asleep and the room catches fire. The fire spreads and takes out part of the roof. The fire brigade put out the fire with hoses and water penetrates through the floors below.

My roof and the guy downstairs are not covered. Neither is the HMO where it started. We are all at a loss. The insurance company refers to the clause, even though the issue has nothing to do with us.

No amount of notices or warnings can take into consideration tenant error. The reason we have insurance is for big items like fire or water damage.

Have you had/heard of this situation? How did you overcome it? The insurance broker is working on it, but says all policies would say the same?

Thanks in advance,

Clem


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Jason McClean - The Home Insurer

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9:52 AM, 14th April 2025, About a month ago

Hi Clem
Thanks for the question. The answer is pretty clear though, the wording provided by your insurers includes the terms you need to adhere to.
There is not any room for interpretation. Cooking in a room that is not a kitchen is prohibited. It is your responsibility to ensure tenants/leaseholders know this and act accordingly. Any sign of the term being broken and you need to act to protect your property.
If you fear cooking in rooms may take place, then look for a policy that allows it and specify on the statement of fact it may take place. The insurance will cost more, possibly quite a lot more in multiples, but that's because the risk is high and you want cover.
If something is prohibited in the wording, take it as literal; there is no discussion to be had and it is not the insurer's job to inform your leaseholders and tenants, it is your property and that falls to your control.
Sorry, maybe not the answer you wanted, but hopefully helps you managing your property moving forward.

Dave InDevon

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12:40 PM, 14th April 2025, About a month ago

That should read the marionette I do NOT own - it’s on a lease .

Des Taylor & Phil Turtle, Landlord Licensing & Defence

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13:18 PM, 14th April 2025, About a month ago

Contact your insurance broker urgently and get them to find an insurance that covers the actual situation

When they say you are not covered you can be certain you are not covered

Simon F

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2:11 AM, 15th April 2025, About a month ago

Insurers of HMOs naturally makes a distinction between HMOs with separated kitchens and those with cooking facilities in each and every room. The latter is a significantly higher fire risk and premiums are higher as a result.
If you might have indirectly encouraged use of camping stoves in rooms through inadequate kitchen facilities, in the event of a fire incident the loss adjuster can be expected to take a dim view.
Yours is a block with 5 flats, 1 kitchen in each separate from any other habitable room. For the HMO you control, it is worthwhile ensuring that occupants are informed all appliances must be kept and used in the kitchen only. That could be useful documentary evidence in case of any dispute with a loss adjuster.
There is no insurance policy that will cover all risks without caveats. You only ever get as much coverage as you are prepared to pay for.
You have to take your own view on the likelihood of any particularly unusual risks you want covered like night fishermen camping in their rooms.

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