Business Insurance : HMO Insurance

HMO Insurance

Protect your investment and ensure peace of mind with our comprehensive HMO insurance. Tailored for landlords of Houses in Multiple Occupation, our policy covers a range of unique challenges associated with multi-tenant properties.

Why choose HMO landlord insurance?

Loss of rent cover: Secure your income with coverage for lost rent if your HMO becomes uninhabitable.

Liability coverage: Stay protected against legal claims and costs arising from injuries on your property.

Legal expense protection: Get coverage for legal disputes, safeguarding you from unexpected fees.

Tailored to HMO needs: Our policy is specifically designed for the unique challenges of HMO landlords.

Peace of mind: Manage your HMO property with confidence, knowing your investment is protected.

Find the perfect fit for your HMO property with our diverse coverage options. We compare prices from leading insurers and secure the ideal HMO insurance tailored just for you.

HMO Insurance FAQs

What is a HMO?

HMO are Houses in Multiple Occupation. This type of property is often rented out to several tenants with separate tenancy agreements. A typical HMO in England and Wales is a home shared by at least three people from different households, sharing main facilities like a kitchen, bathroom or living area.

What is HMO insurance?

HMO insurance caters exclusively to Houses of Multiple Occupancy. This insurance differs from standard policies, which usually cover single-tenancy properties under Assured Shorthold Tenancy agreements. HMO insurance is designed to cater to the unique aspects of properties with Multiple Tenancy agreements, making it essential for landlords of licenced HMOs.

Why do I need HMO insurance?

Even if you own your property without a mortgage, not having insurance can be risky. For those with buy-to-let mortgages, lenders often require at least basic landlord insurance as part of the loan conditions, covering the building itself.

Opting for HMO insurance is a wise decision. It safeguards you financially against unexpected events or legal issues. Without insurance, any damages or legal challenges would come directly out of your pocket, potentially costing you significantly.

How much does an HMO licence cost?

Different councils charge different fees for HMO licences, depending on the number of HMOs you run. A new HMO application can cost upwards of £1000. Prices start at around £300. Generally, renewal fees start at around £150, and discounts are often available if you renew the licence for more than one year or have more than one HMO.

What does HMO insurance cover?

HMO insurance is a customisable policy tailored to the specific needs of HMO landlords. It covers structural damages to the property from incidents like fire, flood and vandalism. The policy also offers contents insurance for items in communal areas, liability coverage for legal costs and compensation in case of accidents on the property, and protection for periods when the property is unoccupied.

Additional options are also available, such as loss of rent insurance, alternative accommodation cover, legal expenses, emergency cover, accidental damage and malicious damage insurance. Having this wide-ranging coverage ensures landlords are covered for all the risks associated with managing an HMO.

What doesn’t HMO insurance cover?

HMO insurance usually doesn't cover damage from pets or pests. It also doesn't cover the normal wear and tear or breakdowns that occur with older household appliances. Plus, if you don’t keep up with regular maintenance and something goes wrong, your insurance might not cover the costs. Keeping your property well-maintained is really important to ensure your insurance works for you.

Do I need HMO insurance if I already have landlord insurance?

Although HMO landlord insurance is similar to standard landlord coverage, it's important to understand the differences, especially if you're transitioning a property to a HMO. Renting to multiple separate people increases the risk of accidents and damages due to more frequent foot traffic. This change should be reflected in your insurance premium.

If you already have a landlord insurance policy and you decide to rent out a property as an HMO, it's crucial to inform your insurer about this change. Failing to update your insurance accordingly could risk invalidating your existing policy, which might lead to your insurer denying claims.

What shared living arrangements aren't considered HMOs?

Some properties are exempt from being classified as HMOs. These include homes occupied by a single family, which may include relatives, stepfamilies, and foster children, as well as properties with live-in domestic staff like nannies or carers. Properties for migrants, seasonal workers, or asylum seekers are also not considered HMOs.

There are also exclusions for buildings managed by Local Housing Authorities, student halls, boarding schools, religious buildings, registered social landlords, and properties linked to emergency services and the NHS.