Helpful Tips Victoria Barker 06/09/2020

Rentguards Guide to HMO Insurance for Landlords

If you are letting a property to multiple tenants, this may make it a house in multiple occupation (HMO). When this is the case, there are factors to be aware of that might not apply to a standard residential let, such as specific HMO insurance.

Knowing what it means to let an HMO can help you to look after your tenants as well as your financial investment.

Rentguard can also provide insurance for HMO properties. You can obtain a quote from our website.

How do I know if my let property is an HMO?

The Government defines an HMO as being a property where at least three tenants from more than one household are living and sharing toilet, bathroom or kitchen facilities.

If there are five or more tenants from more than one household living in your property and sharing toilet, bathroom or kitchen facilities, this will make it a large HMO.

What is HMO property insurance?

HMO insurance is tailored to provide specialist cover for landlords with HMO lets. There can be specific risks associated with this type of rental property, which might not be covered by standard property insurance.

Having access to bespoke protection to fit the needs of your investment can be more suitable for landlords with HMOs.

How is HMO insurance different from normal property insurance?

Rather than a one-size-fits-all policy that you might receive from standard property insurance, HMO insurance can cover the basics – such as building insurance and property owner’s liability insurance – and provide optional additional covers useful to landlords.

Building insurance can cover landlords for costs associated with repairing or rebuilding the property, whereas contents insurance covers items within the property if they get stolen or damaged.

As the risks that landlords face can differ depending on the type of let property, it can be helpful to choose what you want to cover.

Do I need HMO insurance?

Although there are no legal obligations to have an insurance policy in place for your property, many mortgage lenders will require it as part of their terms and conditions. As an HMO landlord, you will have specific responsibilities. This includes repairs for features such as sinks, toilets, and radiators. It can be the most sensible and straightforward choice to protect your financial investment, in case of such maintenance costs.

How do I find a suitable HMO insurance policy?

Cover for your HMO is available through Rentguard, a provider of bespoke landlord insurance, who can tailor a policy to your specific needs.

Rentguard's specialist Residential Landlord Insurance is available for a wide range of buy-to-let properties, including HMOs, bedsits and purpose-built flats. This policy covers the standard perils for HMOs such as fire, flood, storm damage, escape of water, public liability, loss of rent or alternative accommodation, accidental damage, theft and subsidence.

Even if you are new to HMO rentals or are unsure of their specific requirements, they are able to discuss your requirements and offer a product intended to meet the demands and needs of HMO landlords.

You can obtain a quote from our website.


*The opinions and views expressed in the above articles are those of the author, Rentguard, only and are for guidance purposes only. The authors disclaim any liability for reliance upon those opinions and would encourage readers to rely upon more than one source before making a decision based on the information

Victoria Barker

Victoria Barker Communications Officer

Victoria is the Communications Officer for the NRLA.

She is responsible for producing articles for our news centre, the weekly e-newsletter, and manages and creates content for the association’s social media channels. She also contributes to our members magazine, Property.

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