Downstairs neighbours Insurance for Renting out HMO

zipp

Hi there,

We share ownership of a house split into two flats.
We own the upstairs and our neighbours own the downstairs flat which they have been renting out for years.
Our insurance is up for renewal and I recently discovered from the insurance company that though downstairs have registered their property recently as a HMO they have said that they are living at the property which is not the case.

 I spoke to the rep at the insurance company and asked him if this would make any difference should there be a a fire or other damage in their property to the claim.
 He was non committal and said the insurance company can only go on the information provided.
So my question is should we ask downstairs owners to declare that they are renting out the property to tenants or will it be causing unnecessary conflict for nothing.
 I am always afraid that a fire may break out due to renters not always being vigilant and if the owners have not declared that they are renting property out it might render any claim invalid?
Help is most appreciated. We need to renew in a few days so not sure how best to approach. Many thanks

anselld

Yes, it is a material fact which should obviously be declared.

HampshireH

How big is the flat to be a HMO if rented by at least 3 people who aren't the same household.

HMO will have different regulations around fire safety

km1500

If they said they are living there but in fact are renting it out their insurance would likely be invalid so if a fire no payout

ThisIsWeird

Which insurance is this, Zipp? Buildings (for the whole house) or your Contents?
Who arranges the former? I presume you must discuss it?

loubel

If you both own the freehold then presumably you are both named on the insurance and you can authorise them to amend the policy to reflect the HMO use? 

zipp

Great thank you everyone - we have contacted them to adjust as I suspect in the case of a fire it might jeopardise our claim, which is the main fear living above four people renting property. 

Bookworm105

their insurance claim is almost certain to be rejected due to their misleading declaration that it is not let out.

I am amazed that an insurance company gave out personal info to you about your neighbour.

is the flat really an HMO?
Must be a very big flat and subject to "selective licensing" as it cannot be a mandatory HMO

EssexHebridean

Bookworm105 said:

their insurance claim is almost certain to be rejected due to their misleading declaration that it is not let out.

I am amazed that an insurance company gave out personal info to you about your neighbour.

is the flat really an HMO?
Must be a very big flat and subject to "selective licensing" as it cannot be a mandatory HMO

This is a leasehold property so the policy may well be a joint one, in which case there would be no issue with the insurance company telling one policyholder what they have been told by the other, surely?