Landlord Products / ServicesThere’s often confusion around Insurance for HMOs (houses in multiple occupancy), because the element of multiple tenants living under one roof, with allocated and communal areas adds a new dimension compared to regular single-let BTL properties. The common concern with HMO insurance is whether each tenant needs their own policy and/or whether any special kind of insurance policy is required.
I’ll get into all of that in this blog post.
Page contents
- HMO Landlord Insurance Quotes
- What is HMO Landlord Insurance & what does it cover?
- Do my HMO tenants need separate insurance policies?
- Do I need HMO Landlord Insurance?
- How much does HMO insurance cost?
- My Top Tips
HMO Landlord Insurance Quotes
If you have absolutely no interest in learning the theory, and you simply want me to recommend a HMO insurance provider, then I’m going to point you in the direction of QuoteSearcher. I’ve successfully used (and subsequently partnered with them) for several years now, which is why I don’t flinch when it comes to recommending their services.
If you tap on the ‘quote’ button below, you will be directed to a landlord insurance form. After filling in the quick form, a specialist broker will contact you to run through your requirements and the options available. There is no obligation and receiving the quotes is 100% free. I’ve personally always managed to squeeze great deals out of them (often saving £100’s), you can read more about that here (if you care enough).
- Quotes from UK insurance providers
- One short form – save time & money
- Speak to a specialist UK broker to ensure you get a suitable product for your circumstances
Get HMO Landlord Insurance Quotes
What is HMO Landlord Insurance & what does it cover?
The generic term Landlord Insurance typically refers to building insurance (i.e. insurance for the physical premises), even though there are other types of insurance available specifically for landlords (e.g. Rent Guarantee Insurance (RGI)). So in this specific case, we’re referring to the insurance of a HMO property.
Standard building insurance policies will cover the cost of repairing the structure of your HMO property if it’s damaged/destroyed by an “insured event”, which typically includes the following:
- Fire
- Flood
- Weather damage
- Subsidence
- Burst pipes
- Theft & vandalism
- Damage to permanent fittings e.g. bathrooms and kitchens
It’s important to note that policies can vary wildly, even from the same provider, so it’s important you know exactly what you’re being covered for before taking out a policy. For example, “flood damage” may not be standard cover for properties in high-risk flood zones, so you may need to splash on additional coverage [for a premium].
Standard HMO building insurance does NOT typically cover contents (e.g. furnisher). However, since most HMO properties are furnished, or at least part-furnished, many landlords include “contents insurance” to their policy, which is a common add-on. Most insurance providers will be able to provide both building and contents insurance within the same policy.
Do my HMO tenants need separate insurance policies?
I’ll answer this with two key points:
- If you get a HMO building insurance policy, it should cover the entire property, including all the rooms. So your tenants will NOT need any additional policy that covers damage to the property.
- If your tenant wants their personal possessions insured (e.g. laptop, iPad, furnisher), then it is their responsibility to arrange it. The landlord has no legal responsibility to provide contents insurance for their tenants possessions. In fact, most landlords don’t voluntarily do it either (just in case you were wondering).
Do I need HMO Landlord Insurance?
Purely from a legal perspective, landlords aren’t required by law to have building insurance, or any other type. I personally think that’s pretty strange considering some of the bogus regulations that do exist, but anyhow, I digress.
Either way, there is literally NO excuse for not having building insurance, and the cons for not paying a relatively minimal amount for building insurance far outweighs the pros. For example, if the property suffers from fire damage, the landlord would need to cover the costs for repairs without a valid insurance policy, which can result in several thousands of pounds in repair costs.
In short, I’d question any landlord’s judgement and sanity that opts to go without; landlord building insurance is essential and the bare minimum, while the other types available aren’t necessary as critical, but can definitely be sensible in certain circumstances (particularly Rent Guarantee Insurance (RGI) and Landlord Maintenance & Home Emergency Cover).
On a side note, almost all BTL mortgage lenders that I’m aware of require the homeowner to have building insurance as a condition of the loan.
How much does HMO insurance cost?
How long is a piece of string?
Yup, sadly, it’s that kind of question. Sorry to be the bearer of annoying news.
When it comes to calculating the premium for HMO insurance policies (and most other insurance policies), the insurer will consider many factors, including (but not limited to):
- Location
- Size of property
- Number of HMO tenants
- Type of building
- Claim history
- The extend of your coverage
That said, I will say that, generally speaking, you can expect to pay anywhere between £180 – £350. But please note, that’s just a very loose estimate based on my experience.
Get HMO Landlord Insurance Quotes
My Top Tips
- Read and understand all the terms and conditions in your proposed policy. Often the cheapest isn’t always the best suited for your circumstances! If there are any details you are unsure about, ask your policy provider for clarity.
- While you can buy insurance policies online directly, I recommend talking to a broker like QuoteSearcher, so you can discuss your requirements with a specialist, as they’ll be able to guide you.
- Make sure your policy is suited for your specific circumstances so you avoid over or under insuring.
- Check if your policy requires you to pay an excess fee with any claims, and check the amount. Usually policies with higher excess fees have a lower premium, just like with car insurance.
- Be completely honest with the information you provide to your insurer, and make sure your policy is specifically for a HMO property. If details you provide are found to be misleading or inaccurate, your policy could be void.
- If any of your circumstances change through an existing policy (e.g. you build an extension, tenancy status), you should contact your insurance provider immediately to update their records. Otherwise they may refuse any future claims.
- Auto-renewing or remaining loyal to your existing insurance provider is often the most expensive way to renew insurance products. Always get new quotes before your current policy is due to expire, so you can either switch to a cheaper provider, or haggle with your existing one. I’ve personally saved hundreds of pounds by switching providers, and so have many others.
- Landlord insurance is a tax deductible cost :)
Disclaimer: I'm just a landlord blogger; I'm 100% not qualified to give legal or financial advice. I'm a doofus. Any information I share is my unqualified opinion, and should never be construed as professional legal or financial advice. You should definitely get advice from a qualified professional for any legal or financial matters. For more information, please read my full disclaimer.
