HMO Insurance
Compare HMO Insurance Quotes
Compare HMO insurance quotes from 40+ trusted UK insurers.
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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.
Related: What Does Landlord Insurance Cover?
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 Do You Need To Get A Quote?
You’ll need to provide the following information to access house in multiple occupation (HMO) insurance quote:
- Personal details – name, surname, contact details, UK address
- Property details – type of property, location of property, market value
- Tenant details – who do you rent your property to? (e.g. student accommodation vs working professional)
- Insurance details – claims history
- Policy details – what cover are you interested in
Why Do You Need HMO Insurance?
Landlords with HMO properties need HMO insurance because, without it, you won’t be covered if an incident or accident occurs.
Also, landlords with houses in multiple-occupation (HMO) buildings tend to be classed as higher risk by insurance providers.
Imagine a burst pipe in the middle of the night, causing severe water damage to your buildings’ infrastructure; or if tenants (continuously) damage your building. Unfortunately, this is the reality with HMO buildings – you’re at the mercy of (multiple) tenants!
You must register your building as an HMO to get an HMO insurance quote. If you fail to do this, then this will jeopardise your property insurance cover and leave you without protection in the event of a claim.
What are the benefits of an HMO insurance policy?
- Peace of mind: Knowing your property and rental income are protected allows you to manage your investment with confidence.
- Legal compliance: An HMO licence is required by your local authority and needs to be provided to your insurance provider. Obtain your specialist HMO licence through government websites.
- Risk mitigation: HMOs experience higher wear and tear, so proper insurance helps manage potential financial losses.
- Convenience: Have multiple properties covered under a single specialist HMO insurance cover policy with one renewal date.
- Flexibility: Add or remove HMO properties as needed.
Looking for HMO Insurance? Get your quote today!
Get QuotesWhat Are The Different Tenant Types Of HMO Properties?
Several tenants reside in houses in multiple occupancy properties. We’ve put together a quick pro and con list for each type of tenant for you.
Students
Pros
- High demand
- Tend to pay their own bills
- Parents/guardians are generally responsible for rental payments
Cons
- Shorter leases
- Higher wear and tear and accidental and malicious damage (e.g. partying, drinking, drugs, etc.)
- Potential noise complaints
Young professionals
Pros
- Longer leases
- Generally more responsible individuals
- Keen to pay higher rentals in exchange for quality accommodation
Cons
- Tenants may expect more internal furnishings or increased security features (e.g. alarm systems, etc.)
- Rental income may be compromised if they lose their job
Temporary/migrant workers
Pros
- Can fill short-term vacancies
- Offer flexible tenancy agreement
Cons
- Language barriers can be challenging
- Residency/legal work permits may not be provided
What are examples of HMO properties?
- Bedsits
- House shares
- Loft conversions (e.g. a flat above a garage)
- Student accommodation
- Hostel
- Long-stay bed and breakfasts (not just for holidays)
What Does HMO Insurance Cover?
What is covered by HMO insurance varies between insurance providers.
Generally, you can combine different types of insurance to create a plan that suits your specific needs.
Let’s take a closer look at what a standard landlord insurance policy entails.
What’s covered
Buildings insurance
Building insurance covers any repair or replacement costs on the exterior of your rental building(s). This includes the actual brick-and-mortar structure alongside fittings and fixtures (e.g. bathrooms, kitchens, exterior lighting, decking, etc.)
Damages that are typically covered by building insurance include:
- Floods
- Burst pipes
- Weather/storm damage
- Fire
- Theft
- Burglary
- Vandalism
Contents insurance
This covers the items inside your rental properties. It is particularly helpful if you rent out furnished properties. Items may include:
- Carpets/rugs
- Curtains
- Beds
- Microwaves
- Fridges
- Washing machines
- TVs
- Sofas
- Cutlery
- Wardrobes
You must specify which items you provide to your tenants in these instances. Contents insurance does not cover tenants’ personal belongings (e.g. laptops, mobile devices, clothing, etc.) and they will need to take out their own insurance cover for these items.
Property owners’ liability cover
Property owners liability cover is not a legal requirement but if you don’t have it, you’re financially liable for any claims made against you.
HMO landlord insurance often includes liability insurance for this reason and covers:
- Legal expenses if you are sued
- Compensation costs arising after a person/tenant/guest injures themselves on your property
Let’s say a tenant or one of their guests trips and falls on a wobbly step, breaks their wrist and decides to take you to court. Legal fees can be hefty and you’ll need to cover this out of your own pocket if you do not have property owner liability cover in place.
What are HMO landlords not covered for?
- General wear and tear of your property
- Uninsured contents not specified on your policy (e.g. alarm systems, electric devices, etc.)
- Tenant’s personal belongings (they require their own insurance for this)
- Intentional/deliberate damage by the landlords themselves (to claim insurance payouts)
- Unoccupied properties that have exceeded the standard 60 – 90 day period
- Environmental damages such as pollution caused by tenants/landlords
- Business activities if HMO properties are used for unauthorised business purposes such as mechanic workshops, nail salons or the like
- Pet damage
What Add-Ons Are Available For Your HMO Insurance Policy?Â
HMO landlords can add these additional features to their HMO landlord insurance policy:
Legal expenses insurance
Legal expenses insurance covers any legal fees you may incur in the event of a dispute. You must have legal expense coverage if you have an HMO property, as you may be subject to claims from multiple parties at once.
Rent guarantee insurance
Rent guarantee insurance compensates you financially if the people you rent your house to do not pay their rent. It is also called tenant default insurance, covering you when tenants default on their rental payments.
However, you must prove you’ve conducted financial checks on your tenants before making a claim. Speak to your insurer to learn what information you need.
Loss of income insurance
Loss of income insurance protects you if renters need to move out of your property due to an insured event, such as fire or flood damage.
Alternative accommodation cover
Alternative accommodation cover provides financial assistance when your tenants require alternative accommodation. Let’s say your tenants have to temporarily move out while your HMO property is undergoing fire or water damage repairs.
Unoccupied property insurance
Unoccupied property insurance covers obvious risks to any property standing empty. This kind of insurance protects your property even if there is no one living in it but generally only for a limited period of around 60 to 90 days.
Home emergency cover
Home emergency cover covers various household crises, such as electrical shorts and plumbing issues. Some insurance providers may also cover boiler repairs as part of landlord policies.
Accidental damage cover
Accidental damage cover allows you to repair any unintentional damage on the property, reimbursing you for money spent on repairs. For example, a tenant mistakenly pierces a water pipe when hanging a picture frame, leaves a tap running that floods the bathroom or breaks a window when playing football in the yard.
Malicious damage insurance
Malicious damage insurance compensates you if/when tenants deliberately damage your property. It usually covers events like arson, broken furniture, and graffiti. You must present your insurer with proof that the damage was caused with intent.
Employers’ liability insurance
Employers’ liability insurance is a legal requirement if you employ staff at your rental properties. These employees may be cleaners, gardeners, estate or property managers. It covers you financially if your employee is injured because of the work they do for you. Without it, you will receive a daily £2,500 penalty fee until you have the right cover in place.
Terrorism cover
Terrorism cover protects you, your tenants and your properties against acts of terrorism (i.e. damage caused by someone part of an organised criminal group).
How Much Does HMO Insurance Cost?
The cost of basic landlord insurance starts from around £170 per year with the addition of £50 per HMO room. You can pay HMO insurance through monthly instalments or an annual lump sum.
Insurance premiums depend on the size of your property and who you rent your properties to.
Let’s take a closer look.
What impacts HMO insurance premiums?
- Property type – house, flat or loft conversion
- Property size (larger premises tend to have higher fees)
- Condition of your properties
- Tenant profile (student vs working professionals)
- UK location of your properties – high-crime or flood-prone areas have higher premiums
- Claims history
- Add-ons chosen
How To Get Cheaper Insurance Quotes
Here are a few ways to lower your HMO landlord insurance policies:
- Screen tenants carefully
- Stay on top of property maintenance
- Increase your property security to deter criminal activity (e.g. CCTV cameras, alarm systems, etc.)
- Enhance the fire security of your property (e.g. fire doors, smoke alarms)
- Opt for annual payments as opposed to monthly instalments
- Increase voluntary excess
- Compare prices and quotes from numerous UK insurance companies
- Only choose the optional extras you need
- Keep claims to a minimum
How To Compare HMO Insurance Quotes At SimplyQuote.co.uk?
Comparing HMO insurance quotes is a breeze with SimplyQuote on your side:
- Fill in the online form with details about yourself, your property, and your UK location.
- Select which optional add-ons you want to include on your policy.
- Compare quotes with SimplyQuote’s 100% free, online comparison tool.
- Save money on the best deal today.
Frequently Asked Questions
HMO landlord insurance is a type of property insurance designed especially for landlords with HMO properties. These properties have multiple occupancies whereby numerous tenants live together, sharing common living spaces like kitchens and bathrooms but are not part of a single household. Examples include house shares or student accommodation.
Generally, properties rented by at least three people qualify as HMO properties. These tenants must not be related (e.g. family members, in a relationship); they live together and share the same common living spaces. For instance, three different working professionals live together.
No, you do not need an HMO landlord insurance policy by law.
However, we strongly advise you to have this insurance in place as it can save you a lot of money in the long run if claims are made against you. You must pay all costs yourself if you don’t have an HMO policy.
A new HMO landlord licence costs around £1,480.
