SRS Insurance Guide – Converting Properties for Children’s Homes, Supported Living & Assisted Living
Converting a standard residential property into a children’s home, supported living unit or assisted living service requires careful planning, regulatory understanding and specialist insurance.
Whether you are a landlord, developer or care provider, this SRS Insurance guide will walk you through:
- Planning change (C3 → C2)
- Location & environmental risk assessments
- Property suitability
- Compliance requirements
- Insurance considerations
- Common pitfalls to avoid
This guide is written for real-world use in Ofsted, CQC and supported accommodation settings.
Step 1 – Understanding Planning: C3 vs C2
What is C3 Use Class? (Standard Residential)
C3 covers:
- Single-family homes
- Standard tenants
- No care element
- Low regulatory oversight
What is C2 Use Class? (Residential Institutions)
C2 covers:
- Residential children’s homes
- Assisted living / supervised care
- Nursing and specialist care homes
- Learning disability and autism homes
- Some supported living models
If the property will provide care, supervision or 24-hour staffing, C2 is usually required.
When a C3 → C2 Planning Change is Needed
A planning change is usually required when:
- 24/7 staffing is present
- Residents are under care, not simply accommodation
- The home is Ofsted-regulated
- The home operates shift patterns
- Waking night or sleep-in staff are used
- The property is modified for care use
Some supported living models may remain C3 — but this depends on:
- Level of personal care
- Staffing frequency
- Tenancy type
- Local authority guidance
SRS Insurance always recommends planning advice before signing leases or purchasing.
Step 2 – Location Suitability Assessment
Before converting a property, assess whether the location is appropriate for vulnerable residents.
Key location risk indicators:
- High crime areas
- Known antisocial behaviour hotspots
- Close proximity to risks (e.g., busy roads, railway lines, canals, industrial sites)
- Neighbour complaints or likely objections
- Limited access to community amenities
- Past safeguarding concerns in the area
Good locations typically include:
- Quiet residential streets
- Access to schools, GP, transport
- Safe walking routes
- Community facilities
- Supportive local infrastructure
Why location matters to:
- Ofsted – safety, access, community integration
- CQC – appropriateness for service users
- Local Authorities – risk of incident or disruption
- Insurance Underwriters – crime, claims history, neighbourhood profile
A poor location can delay registration, reduce referrals, or make insurance more expensive.
Step 3 – Property Suitability Checklist
SRS Insurance recommends assessing the building’s physical suitability before conversion.
Building criteria include:
- Minimum 3–5 good-sized bedrooms
- Fire doors to required areas
- Hardwired interlinked smoke/heat detection
- Safe electrical installation & EICR compliance
- Secure garden or outdoor space
- Two separate living spaces (for children’s homes)
- Staff office space
- Adequate bathrooms
- Safe kitchen layout
- Escape routes & fire compartmentation
- Robust flooring and durable finishes
- Secure boundaries
Additional for assisted living:
C2 covers:
- Wide door frames
- Step-free access
- Wet room or accessible bathrooms
- Lift access (if multi-storey)
- Emergency pull cords or call systems
A property that meets these standards is easier to insure and easier to register.
Step 4 – Risk Assessments Landlords Must Consider
When converting or leasing the property, the following risk assessments are essential:
1. Environmental & Location Risk Assessment
- Local crime
- Noise
- Neighbour sensitivity
- Police incidents in the area
- Suitability for vulnerable people
2. Fire Risk Assessment
Must be compliant with:
- Regulatory Reform (Fire Safety) Order 2005
- Local authority or fire service guidance
- Ofsted or CQC expectations
3. Property Condition Report
Covers:
- Damp & mould
- Structural safety
- Electrical and gas safety
- Roof condition
- Window security
- Trip hazards
4. Health & Safety Assessment
- Legionella
- Slips and falls
- Garden hazards
- Outbuildings
- Secure storage
5. Provider-Specific Risk Assessment
The care provider will also assess:
- Resident compatibility
- Staffing needs
- Security levels
- Behavioural risk
A well-prepared building reduces operational risk and insurance cost.
Step 5 – Insurance Requirements for Converted Properties
Standard landlord insurance is not valid for:
- Children’s homes
- Supported living
- Assisted living
- Semi-independent 16–18s
- Any setting with staffing or care
SRS Insurance provides specialist cover including:
Required insurance for these property types:
- Buildings Insurance (including malicious damage)
- Landlord Contents
- Property Owners’ Liability
- Loss of Rent
- Unoccupied Property Cover (during registration)
- Malicious Damage by Residents
- Fire & escape of water
- Optional: Legal Expenses
Unique risks insurers consider:
- Staffing levels
- Needs of occupants
- Incident history
- Behavioural risk
- Local area crime
- Whether the provider is Ofsted/CQC registered
- Lease type (FRI, management agreement etc.)
- Fire safety compliance
A specialist broker like SRS Insurance ensures accurate disclosure and protection.
Step 6 – Lease Structure & Legal Considerations
Most landlords use:
- FRI Leases (Full Repairing & Insuring)
- Long-term agreements (5–10 years)
- Rent guarantee models
- Repairs & maintenance clauses
Ensure the lease clearly states:
- Who is responsible for damage
- Maintenance obligations
- Compliance responsibilities
- Insurance limits
- Notification requirements
- Break clauses
SRS Insurance can review the insurance implications of your lease.
Step 7 – Common Mistakes to Avoid
Most landlords use:
- Using standard landlord insurance
- Not declaring resident type to insurer
- Renting in an unsuitable area
- Missing fire safety upgrades
- No planning change (where required)
- Poor lease structure
- Assuming supported living is always C3
- Allowing provider to “handle insurance”
- Insufficient rebuild valuation
Avoiding these mistakes protects your investment and prevents claim failures.
Speak to SRS Insurance Before You Convert or Lease
Whether you’re:
- Converting a house to a C2 Children’s Home
- Leasing to a Supported Living provider
- Developing Assisted Living or CQC services
- Opening Semi-Independent 16–18 units
- Buying a property for a care provider
SRS Insurance can assess your risk, check suitability and arrange the correct cover.
We help with:
- Insurance quotations
- Planning & usage guidance (insurance perspective)
- Location suitability evaluation
- Risk assessment support
- Lease reviews (insurance aspects)
- Fire & compliance guidance
Protect your business against the unexpected with SRS Business Insurance.
Call 01274 965791 or visit www.srs.insurance to request your personalised quote today.