HMO Insurance
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What Is HMO Insurance?
HMO insurance is a specialist type of landlord insurance designed for houses in multiple occupation, where three or more tenants from separate households share facilities such as a kitchen or bathroom.
Standard landlord insurance often excludes or limits cover for multi-tenanted properties because they carry higher risks. More tenants means more wear and tear, a greater chance of liability claims, and stricter regulatory requirements from local councils.
A good HMO policy typically bundles buildings insurance, contents cover, and landlord liability insurance into a single package tailored for shared housing.
How To Compare HMO Insurance Quotes?
You can compare HMO insurance quotes from trusted UK insurers in minutes using an online comparison tool.
Enter your details
Tell us about your property type, the number of tenants, your postcode, and the level of cover you need. The form takes around two minutes to complete.
Compare your quotes
We show you prices from multiple HMO specialist insurers side by side, so you can see exactly what each policy includes and how much it costs.
Check policy details
Look beyond the headline price. Check the excess, any exclusions for bedsits or shared kitchens, and whether the policy covers your specific HMO licence type.
Buy online
Once you've chosen the right policy, buy your cover online. Most HMO policies can start on the same day you apply.
What Does HMO Insurance Cover?
HMO insurance covers the main risks landlords face when renting to multiple unrelated tenants, including property damage, liability claims, and lost rental income.
Buildings insurance
This covers the cost of repairing or rebuilding the physical structure of your property after events such as fire, flooding, storm damage, or subsidence. It includes walls, roofs, floors, fitted kitchens, and bathrooms.
Contents insurance
If you provide furniture, appliances, or other items for your tenants, contents insurance covers the cost of replacing them if they're damaged, stolen, or destroyed. This is especially important for furnished HMOs where landlords supply beds, sofas, and white goods.
Landlord liability insurance
This protects you if a tenant or visitor is injured at your property and makes a compensation claim against you. With multiple tenants sharing communal areas, the risk of slips, trips, and falls is higher than in a standard let.
Rent guarantee insurance
Rent guarantee insurance pays out if a tenant stops paying rent. For HMO landlords, losing income from even one room can affect your ability to cover the mortgage.
Loss of rent
If your property becomes uninhabitable after an insured event such as a fire, loss of rent cover replaces the rental income you would have received while repairs are carried out.
| Cover type | What it protects | Typical limit |
|---|---|---|
| Buildings insurance | Structure, roof, walls, fitted kitchens | £300,000–£1,000,000+ |
| Contents insurance | Furniture, appliances, white goods | £5,000–£50,000 |
| Landlord liability | Injury or property damage claims | £2,000,000–£5,000,000 |
| Rent guarantee | Unpaid tenant rent | Up to 12 months |
| Loss of rent | Income during uninhabitable periods | Up to 24 months |
| Legal expenses | Disputes, evictions, tax investigations | £50,000–£100,000 |
Who Needs HMO Insurance?
Any landlord who rents a property to three or more tenants from separate households sharing communal facilities needs HMO insurance.
Student landlords
Student lets are one of the most common types of HMO. Rooms are typically let individually to students who share a kitchen and bathroom, and the higher turnover between academic years increases wear and tear.
Professional sharers
Renting rooms to young professionals in cities is a growing market. These properties often require higher contents cover because landlords tend to furnish them to a higher standard.
Supported living providers
Landlords who work with local councils or charities to house vulnerable tenants face additional risks. Specialist HMO insurance can include cover for malicious damage and higher liability limits.
Portfolio landlords
Portfolio landlord insurance covers landlords with multiple HMO properties under a single policy. This is often cheaper than insuring each property individually.
Bedsit and hostel operators
Properties where tenants have individual rooms but share a kitchen or bathroom are classed as HMOs. These carry higher risks due to the volume of people living in shared spaces.
What Types Of HMO Property Are There?
An HMO is any property rented to three or more tenants from two or more separate households who share at least one facility.
Shared houses
The most common type of HMO, where each tenant has their own bedroom and everyone shares the kitchen, bathroom, and living areas. These are popular with students and young professionals.
Bedsits
Each tenant has a self-contained room with basic cooking facilities, but shares a bathroom with other tenants. Bedsits are common in older converted properties.
Converted flats
Buildings that have been converted into separate flats without meeting the 1991 Building Regulations standards. If the conversion doesn't meet the required standard, the whole building is classed as an HMO.
Purpose-built HMOs
Properties specifically designed for multiple tenants, often with en-suite rooms and communal kitchens. These are becoming more common as the HMO licensing rules drive higher standards.
Do You Need An HMO Licence?
Yes, if your property has five or more tenants from two or more separate households, you need a mandatory HMO licence from your local council.
Since October 2018, mandatory licensing applies to all HMOs with five or more people forming two or more households, regardless of the number of storeys. Before this change under the Housing Act 2004, only HMOs of three or more storeys needed a licence.
Some local councils also run additional licensing schemes that cover smaller HMOs with three or four tenants. Check with your council to find out whether your property needs a licence.
What happens if you don't have a licence?
Operating an HMO without the correct licence is a criminal offence. Councils can issue fines of up to £40,000 per offence, and your tenants may be able to claim back up to 24 months of rent through a rent repayment order.
How much does an HMO licence cost?
A new HMO licence typically costs between £500 and £1,500, depending on your local council. Renewals are usually cheaper, and the licence lasts for up to five years.
| Licence type | Applies to | Typical cost |
|---|---|---|
| Mandatory | 5+ tenants, 2+ households | £500–£1,500 |
| Additional | 3–4 tenants (where council scheme applies) | £500–£1,000 |
| Selective | All private rented properties in designated areas | £400–£800 |
Is HMO Insurance A Legal Requirement?
HMO insurance is not a legal requirement in the UK, but most mortgage lenders require landlord insurance as a condition of your buy-to-let mortgage.
While no law forces you to buy HMO insurance, going without it means you pay for repairs, legal claims, and lost rent out of your own pocket. A single uninsured claim could wipe out years of rental income.
If you employ staff such as cleaners or maintenance workers at your HMO, employers' liability insurance is a legal requirement under the Employers' Liability (Compulsory Insurance) Act 1969.
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How Much Does HMO Insurance Cost?
HMO insurance typically costs between £300 and £1,000 per year, depending on the size of the property, the number of tenants, and the level of cover you choose.
Smaller HMOs with three to four tenants in low-risk areas pay towards the lower end. Larger HMOs with six or more tenants, or properties in London or high-crime areas, can pay more.
| HMO size | Typical annual cost | Key cost factors |
|---|---|---|
| 3–4 tenants | £300–£500 | Location, property age, cover level |
| 5–6 tenants | £450–£700 | Licence type, rebuild cost, claims history |
| 7+ tenants | £650–£1,000+ | Property size, fire safety, additional covers |
What Affects The Cost Of HMO Insurance?
Several factors influence how much you pay for HMO insurance, and insurers assess each one when calculating your premium.
Number of tenants
More tenants means more risk. A six-bed HMO costs more to insure than a three-bed because there's greater potential for damage, liability claims, and rent arrears.
Property location
Postcode is one of the biggest pricing factors. Properties in areas with higher crime rates, flood risk, or subsidence history attract higher premiums.
Rebuild cost
The estimated cost to rebuild your property from scratch determines your buildings insurance premium. Older or larger properties with higher rebuild values cost more to insure.
Claims history
Previous claims on any of your properties can increase your premium. A clean claims record over several years helps keep costs down.
Level of cover
Higher cover limits and lower excesses increase your premium. Adding optional extras such as accidental damage cover or legal expenses also pushes the price up.
How Can You Get Cheaper HMO Insurance?
There are several practical ways to reduce your HMO insurance premium without cutting the cover you need.
Improve property security
Fit five-lever mortice locks, burglar alarms, and smoke detectors in every room. Insurers reward properties with better security measures with lower premiums.
Increase your voluntary excess
Agreeing to pay a higher excess when you claim can reduce your annual premium. Only do this if you can comfortably cover the excess amount from savings.
Bundle multiple properties
If you own more than one rental property, portfolio landlord insurance lets you cover them all under a single policy. Multi-property discounts can save 10–20% compared to individual policies.
Compare quotes annually
Don't auto-renew without checking the market. Comparing quotes from multiple insurers at renewal is the single biggest way to avoid overpaying.
What Do You Need To Get An HMO Insurance Quote?
To get a quote, you'll need basic details about your property and your tenants.
Property details
This includes the postcode, property type, number of bedrooms, year of construction, and the estimated rebuild cost. You'll also need to confirm whether the property has any non-standard construction such as flat roofs or timber frames.
Tenant information
Insurers will ask about the number of tenants, the tenant type (students, professionals, or DSS), and whether you provide the property furnished or unfurnished.
Licence and safety details
You'll need to confirm whether your property has a valid HMO licence, a current gas safety certificate, an electrical installation condition report, and working smoke and carbon monoxide alarms.
All insurers on SimplyQuote are regulated by the Financial Conduct Authority. For industry guidance on landlord insurance standards, the Association of British Insurers publishes advice on property cover.
Compare HMO Insurance Quotes
Get quotes from a panel of 40+ trusted UK landlord insurers.
Frequently Asked Questions
No, most standard policies exclude or limit cover for properties with three or more unrelated tenants. You need a specialist HMO policy that covers the additional risks of shared housing.
Some insurers will cover unlicensed HMOs, but many won't. Operating without a licence where one is required is a criminal offence, and any claim could be rejected if your insurer finds out.
Some policies include malicious damage as standard, while others offer it as an optional extra. Check the policy wording carefully, as this is one of the most common claims on HMO properties.
Yes, bedsits where tenants have individual rooms but share a bathroom or kitchen are classed as HMOs. They may need a licence depending on the number of tenants and your local council's licensing scheme.
You're not legally required to have it, but your mortgage lender almost certainly requires landlord insurance as a condition of your buy-to-let mortgage. Our guide on whether you need landlord insurance covers this in detail.
A standard rental is let to a single household on one tenancy agreement, while an HMO is let to three or more people from separate households who share facilities. The key difference is the number of separate tenancy agreements and unrelated tenants.
Yes, you can compare landlord insurance quotes from multiple UK insurers at SimplyQuote in a few minutes.
Yes, buildings insurance within your HMO policy covers fire damage to the structure, and contents insurance covers any furnished items you provide. Fire is one of the biggest risks in HMO properties due to multiple cooking and heating appliances.
Home insurance is designed for owner-occupiers. HMO insurance is designed for landlords and includes cover for tenant-related risks such as rent default, malicious damage, and landlord liability that home insurance does not cover.
Yes, most HMO policies offer legal expenses cover as an add-on. This covers the cost of tenant disputes, eviction proceedings, and tax investigations, typically up to £50,000 or £100,000.
