Best Landlord Insurance for HMOs
Written by Scott Jones, founder of PropertyKiln · Last updated
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HMO insurance is not a rebadged BTL policy. You are insuring higher fire risk, more people, and more ways for a claim to be refused if the wording is wrong.
HMO insurance: what is different
For HMOs, insurers care about:
Number of rooms and tenants.
Tenant mix (professionals, students, benefits, asylum, local authority placements).
Fire safety (FD30 doors, closers, interlinked alarms, emergency lighting where needed).
Licensing (mandatory or additional HMO licence in place where required).
Good HMO policies add or strengthen:
Room-by-room and communal area cover: buildings and landlord's contents in both bedrooms and shared areas.
Employers' liability if you directly employ a cleaner, handyman or gardener (often GBP 10m cover).
Longer unoccupancy tolerance and clear loss-of-rent cover when an insured event wipes out multiple rooms.
Typical price ranges landlords report and brokers confirm:
5-bed HMO: about GBP 600-1,000/year depending on area, build, tenant type and claims history.
8-bed HMO: commonly GBP 900-1,500/year, sometimes higher for high-risk tenants or London postcodes.
These are ballparks, not quotes, but if you see numbers wildly below that you are probably looking at the wrong type of policy.
Provider comparison: HMO-specific angle
| Provider | HMO-specific features | Tenant types and room limits | Claims and process | Typical cost signals (5- / 8-bed) |
|---|---|---|---|---|
| Alan Boswell | Dedicated HMO product, covers shared areas, different tenancy types, up to 90 days full cover between lets; employers' liability up to GBP 10m; options for malicious damage, rent guarantee, home emergency | Will look at most tenant types including students and UC; broad HMO appetite via panel; wide range including large HMOs and bedsits | In-house claims team and dedicated handler, strong reputation for fighting complex multi-tenant claims | Typical 5-bed HMO in a normal area often GBP 700-1,000 band, 8-beds higher |
| Just Landlords | Landlord specialist with cover for HMOs and room-lets when correctly declared; buildings, contents, liability, loss of rent, legal expenses and home emergency options | Accepts professionals, students and some non-standard tenants; details depend on underwriter. Room limits policy-specific | Direct insurer with online quote and phone claims support; mid-pack for service | HMO pricing in upper mid-range for equivalent risk |
| Total Landlord | Explicit HMO policy for house shares and HMOs; covers small to large HMOs; allows multiple properties on one policy | HMO cover across different sizes; terms emphasise shared facilities and no cooking in rooms for preferential rates | Landlord-only insurer with portfolio capability and landlord-focused support | 5-beds in GBP 700-1,000 band and 8-beds GBP 1,000+ depending on area and tenants |
| CIA Insurance | Broker with strong non-standard property book; can arrange room-by-room cover, malicious damage, and loss of rent via various underwriters | Known for taking on "difficult" tenants: DSS, asylum seekers, local authority placements that mainstream brands often decline | Claims via chosen insurer; service varies but well known on forums for placing awkward HMO risks | Toward pricier end in exchange for broader acceptance |
| Endsleigh | Long-standing student landlord specialist; HMO cover heavily geared to student lets with shared accommodation and communal area cover | Particularly strong on student HMOs; may be less flexible for benefits/room-let tenants | Large brand in student market; claims through standard insurer channels | Typical 5-bed student HMOs in provincial cities often GBP 600-900 if risk is good |
| Simply Business | Broker/aggregator; select "HMO" and get quotes from a panel including buildings, contents, liability, loss of rent and legal expenses | Tenant types and max rooms depend entirely on which insurer you choose through the platform | Quick online multi-quote; claims process depends on underlying insurer | Real HMO quotes for 5- and 8-beds are usually closer to ranges above |
For room limits, many HMO schemes insure up to 10 tenants per property as standard, with discounts between 3 and 6 tenants, and separate large-HMO schemes above that.
What you should prioritise as an HMO landlord
Correct HMO wording, not single-let policy
The policy must explicitly say it covers HMOs or "house shares", not just "a property let on one tenancy". If you have locks on bedroom doors and separate tenancies, assume you need an HMO policy. Cheap single-AST cover will not pay out if you have misdescribed the risk.
Tenant type and room count
Check that your actual tenants (students, sharers, benefits, local authority placements) are allowed. Some policies exclude or surcharge DSS and asylum placements. Confirm the maximum number of tenants or rooms per property and per policy. Many standard HMO products cap at around 10 tenants, with different pricing bands.
Fire and licensing compliance baked into the assumptions
HMO insurers assume you have appropriate HMO licensing, interlinked alarms, fire doors and emergency lighting where required. If you are not compliant, they can refuse a fire claim on the basis of breach of conditions or material misrepresentation.
Loss of rent for multiple rooms
Look for explicit loss of rent cover tied to the building sum insured (for example up to 20% of rebuild) rather than a small fixed limit. Make sure this covers loss of rent from all affected rooms for 12-24 months after a major insured event, not just a token amount.
Legal expenses and possession
HMO evictions are complicated and legal costs add up quickly. A decent legal expenses add-on often covers possession proceedings, rent recovery and disputes up to GBP 50k-100k.
Excesses that make sense for HMOs
HMO claims are more frequent, so insurers often push up excesses, especially for escape of water and malicious damage (up to GBP 1,000 excess when more than six tenants). Cheap policies sometimes hide unaffordable excesses in the small print. A GBP 1,000-1,500 excess on every water damage claim is painful in a student HMO.
What forums get wrong about HMO insurance
Using standard BTL policies for HMOs: you see people proudly quoting GBP 200-300/year for a "5-bed HMO" policy that is in fact a single-let BTL product. This is cheap because the insurer thinks you have one household. When there is a serious fire and the loss adjuster sees five locks on bedroom doors, you have a real risk of no payout.
Assuming rent guarantee works like loss of rent: rent guarantee only covers unpaid rent from tenants who refuse to pay, not loss of rent after a fire or flood. Conversely, loss-of-rent after insured damage will not cover tenants who simply stop paying. You need to understand the difference and not double-count cover.
Under-estimating the cost of high-risk tenant mixes: benefits and asylum seekers increase premiums. Brokers like CIA and some panel insurers will still cover you, but it is not realistic to expect the same premium as a professional HMO.
Not declaring cooking in rooms: many HMO and bedsit policies refuse cover where tenants cook in rooms rather than a shared kitchen. If you do allow this, hiding it to get a cheaper quote can kill a claim.
Focusing on total premium instead of total risk: shaving GBP 100 off an HMO premium but accepting lower liability limits, no malicious damage, and poor loss-of-rent terms is a terrible trade when you are collecting GBP 30-60k/year rent from that building.
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