Council approval did not resolve the insurance issue

A property owner operated an approved rooming house.

The property had been recognised by the relevant local authority for its intended use, and the owner believed this meant the existing landlord insurance should continue without difficulty.

At renewal, the insurer was no longer prepared to continue the cover.

From the owner's perspective, the building had not changed.

It was still a residential property and its use had been approved.

From the insurer's perspective, however, the occupancy involved multiple unrelated residents renting rooms and sharing common facilities.

This created a different risk profile from a conventional residential tenancy.

The key issue was not simply whether the property use was lawful.

It was whether the insurer was prepared to cover that occupancy under its landlord policy.

Wesure worked with the owner to clarify:

• the number of rooms
• the maximum number of occupants
• the tenancy arrangements
• shared facilities
• fire protection
• building construction
• property management
• access and security controls
• claims history
• the owner's role in the operation

This information was organised so the risk could be presented accurately to insurance markets that may consider non-standard residential accommodation.

We also explained the difference between regulatory approval and insurance underwriting.

The owner gained a clearer understanding of why the existing insurer's decision could not be resolved simply by providing council approval.

The risk required a specialist market approach based on the actual occupancy and operation.

The matter was progressed using a more accurate description of the property rather than treating it as an ordinary landlord risk.

Rooming houses, boarding houses and room-by-room rental arrangements should not automatically be treated as standard residential tenancies.

Owners should disclose:

• how rooms are rented
• who occupies the property
• how common areas are managed
• whether services are provided
• how fire and safety risks are controlled

The correct insurance classification should be considered before relying on an ordinary landlord policy.