Running a House in Multiple Occupation (HMO) comes with more risk, more regulation, and more moving parts than a standard buy-to-let – which is exactly why a standard landlord policy usually isn’t enough. Your liabilities, obligations and requirements change significantly when compared to a standard let property owner, so you’ll need a specialist policy to cater for a house in multiple occupation.
As independent brokers, we have access to a wide range of policies across the market, so we can build you a tailor-made HMO landlord insurance quote to suit your property and your budget. We’re well known throughout the industry for arranging excellent HMO property insurance for landlords, whether you own one house of multiple occupation or a growing portfolio.
What Does HMO Landlord Insurance Cover?
Buildings cover and loss of rent come as standard on our HMO policies. Depending on your needs, you can also add optional benefits:
- Alternative accommodation costs
- Landlords’ contents cover (for furniture you provide)
- Contributions towards alternative accommodation for your tenants
- Legal protection
- Rent guarantee
- Public and property owners’ liability, should anyone be injured on the property
Claims Service and Additional Benefits
Beyond the standard buildings and loss of rent cover, our HMO policies can also include loss of rent over 12, 24 or 36-month periods with no fixed upper limit, and cover extends across any number of licensed rooms – so the policy scales with your property rather than capping you at a set size. If you employ staff – for example as a property developer – it’s also worth arranging employers’ liability insurance to cover injury or illness claims, which we can include as part of your policy. We’ll find you the right level of cover no matter who you let to, including professional tenants, DSS and housing association referrals, students, and asylum seekers.
Licensing triggers vary by local authority – many councils require an HMO licence for properties of more than two storeys, in addition to the tenant and household thresholds covered above – so it’s worth checking both criteria with your council rather than assuming one test alone applies.
When it comes to claims, smaller claims under £2,500 are typically settled within 48 hours, with larger claims aimed to be resolved within a month.
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We work with AXA, Aviva, RSA, Zurich, and specialist Lloyd's syndicates
What Are Houses Of Multiple Occupation?
HMO properties are also known as Houses of Multiple Occupation or Multiple Occupancy Homes – properties in the private sector where tenants share a bathroom or kitchen with someone else. For example, two separate bedrooms rented by different people who both share the same kitchen and/or bathroom.
Under UK rules, a property is generally classed as an HMO once it’s let to three or more tenants from more than one household who share facilities. If you let to five or more tenants forming more than one household, it’s classed as a large HMO and will usually need a licence from your local authority under the Housing Act 2004. The exact definition can vary by location, so always check with your Local Authority to confirm your obligations as an HMO landlord.
This matters for your insurance as much as your legal compliance. Most standard landlord and buildings insurance policies exclude or invalidate cover for HMO-style lets – if your policy doesn’t reflect how the property is actually being used, a claim can be refused, even for something as straightforward as a burst pipe or fire damage. And if your local authority licence has lapsed or was never obtained, that can affect your ability to claim too, so it’s worth checking your licensing status alongside your cover.
HMO Licensing and Compliance
Licensing requirements differ from council to council, so it’s important to check with your Local Authority before you let. Areas commonly required across most licensed HMOs include:
- Working smoke alarms on every floor and fire doors where required
- Regular gas safety checks and up-to-date electrical certification (EICR)
- Adequate kitchen and bathroom facilities for the number of tenants
- Minimum room sizes as set by your council
Operating without a required licence – or letting one lapse – doesn’t just risk enforcement action from your council; it can also compromise your ability to make a valid insurance claim. If you’re unsure whether your property needs a licence, your Local Authority website is the best starting point.
Choose Goldcrest for Your HMO Insurance
At Goldcrest we are proud to be one of the UK’s best providers of specific HMO insurance policies, working with insurers including RSA, Aviva, AXA, and Zurich. We will work with you to ensure you have the right level of cover for your needs, and we offer a no-obligation quotation.
Find out more about landlord insurance and HMO insurance here, or get a quote below to find out how we can help with your HMO landlords insurance.
HMO Insurance FAQs
What is HMO insurance? ›
HMO insurance is a specialist form of landlord insurance for properties let to multiple tenants from different households under separate tenancy agreements. As standard, it covers the building and loss of rent following an insured event, with optional extensions such as landlords’ contents, alternative accommodation, rent guarantee, and public and property owners’ liability – reflecting the higher occupancy and shared-facility risk an HMO presents compared to a single-let property.
Is HMO insurance a legal requirement? ›
HMO insurance itself isn’t mandated by law, but two related requirements make it effectively essential. First, mortgage lenders typically require buildings cover as a condition of the loan. Second, under the Housing Act 2004, HMOs let to five or more tenants forming more than one household require mandatory licensing from the local authority – and insurers may treat an unlicensed property as a material change in risk, which can affect the validity of a claim.
How much does HMO insurance cost? ›
Premiums are underwritten against factors including the building’s rebuild cost (not its market value), number of lettable rooms, construction type, tenant profile, claims history, and the level of optional cover selected. Because HMOs vary so widely on these factors, published price ranges are of limited use – a proper quote requires underwriters to assess your specific property and letting arrangement, which is what we do for you as independent brokers.
Does standard landlord insurance cover an HMO? ›
Usually not. Standard buy-to-let and landlord policies are underwritten on the assumption of a single household occupying the property under one tenancy agreement. Letting to multiple, unrelated tenants without disclosing this to your insurer is a change in the risk they originally agreed to cover – under the duty of fair presentation, this can result in a claim being reduced or refused, or the policy being avoided entirely. A specialist HMO policy is underwritten with multi-occupancy already factored in.
What’s the difference between HMO insurance and regular landlord insurance? ›
HMO insurance is priced and structured around the specific risk factors multi-occupancy introduces: higher wear-and-tear from a greater number of occupants, increased liability exposure across shared kitchens, bathrooms and communal areas, and a statistically higher fire and escape-of-water risk associated with higher-density occupation. Regular landlord insurance is underwritten for a single household and doesn’t price in these factors, which is why it typically excludes HMO-style lets rather than simply charging more for them.
Can I get HMO insurance for a portfolio of properties? ›
Yes. Portfolio landlords can typically insure multiple HMOs under a single combined policy, with each property individually scheduled and rated according to its own rebuild cost, room count and tenant mix – rather than being priced as a single blended average across the portfolio. This can simplify renewal and claims administration while still reflecting the risk profile of each property accurately.
