HMO Insurance

If you are a buy to let landlord, there may be good reasons for investing in a House in Multiple Occupation (HMO) – not least because the rental yields may be up to three times higher, say Property Investments UK.

What constitutes an HMO?

An HMO is any let accommodation for three or more tenants who live as more than one household and share essential facilities such as the toilet and bathroom or kitchen.

If you are a landlord, you must get a licence from the council if the HMO:

  • has five or more unrelated people live in it;
  • has two or more separate households living there.

Some councils also require other HMOs to be licensed. Some councils require all private landlords to get a licence, so make sure you check with your local authority.

We have published a detailed guide to HMOs for landlords.

HMO Insurance

HMO’s occupy a special place in the range of different kinds of private rented accommodation – and, because of that, require a specialist form of landlord’s insurance, namely HMO insurance.

Features of HMO insurance

The HMO insurance arranged by us here at Cover4LetProperty is not only the specialist form of cover you need, but, on top of the standard cover you would expect with traditional landlord insurance, offers a number of additional features too:

Number of tenants

  • clearly, the number of tenants accommodated in your HMO determines the level of risk;
  • cover is available for up to a maximum of 10 tenants in a single HMO – with attractive discounts available if your HMO accommodates between three and six tenants only;

Type of tenant

  • unlike some other landlord insurance providers, we are able to provide HMO insurance for your chosen tenant market – including asylum seekers, local authority placements, tenants in receipt of housing benefit or universal credit, students, and of course, professional and retired individuals;

Contents insurance

  • HMO insurance may incorporate cover for any contents owned by the landlord, including optional cover against accidental damage (provided the total number of tenants is less than seven);

Malicious damage

  • unlike many other policies, ours may also provide cover against malicious damage caused by your tenants or their visitors;
  • where the HMO is occupied by more than six tenants, however, that malicious damage cover may attract an excess of up to £1,000;

Cover for loss of rental income

  • your HMO business depends on a steady stream of rental income from your tenants;
  • in the event of a serious insured event in which the HMO becomes wholly or partly uninhabitable, however, you stand to suffer a loss of rental income;
  • our HMO insurance therefore incorporates compensation for any such loss of rental income – up to 20% of the building insurance rebuild value;


  • insurance is also available if some or all of the units of accommodation in your HMO are bedsits;
  • if you allow tenants to have cooking facilities in any rooms other than purpose-designed kitchens, however, we are unable to provide cover;

Resident owners

  • if you are an owner and landlord who also lives on the premises, we are unable to provide an online quote for your HMO insurance – so, please give us a call on 01702 606301.

HMO insurance is specialist insurance and here at Cover4LetProperty we are specialists in the provision of the cover you need for any House in Multiple Occupation. The additional features of the cover we arrange may ensure that you obtain the insurance you need at a competitive price.