HMO Landlord Insurance
Landlords have many responsibilities, especially when it comes to HMOs. Glowsure can help you find specialist landlord insurance to protect your income from the increased risks associated with multiple occupancy.
What is an HMO?
As the property rental market continues to grow in the UK, Homes in Multiple Occupation (HMOs) have become an increasingly popular option for both landlords and tenants. An HMO is a shared house where unrelated tenants live. These properties are common in the UK’s cities, where many young professionals and students are looking for affordable rentals.
To be classed as an HMO, a property must have at least three tenants from more than one household and shared common facilities like bathrooms and kitchens.
What is HMO landlord insurance?
A standard landlord insurance policy covers rental properties occupied by one family. HMO landlord insurance is designed for houses in multiple occupations where the tenants are not from the same household. It takes account of the increased risks associated with multiple occupancy, giving HMO landlords the extra protection they need.
Why is HMO landlord insurance important?
Where multiple occupants share communal spaces, there is naturally an increased risk of wear and tear, damage, accidents, and even legal disputes. So, for HMO landlords, having the right insurance is essential. HMO landlord insurance covers the increased risk and safeguards them from financial losses and legal issues.
What does HMO landlord insurance include?
HMO landlords’ insurance products vary but typically include the following:
Buildings insurance. This covers the structure of your property from damage caused by events like fire, flood, storm, escape of water and malicious damage.
Contents insurance. Covering damage or theft of furniture/appliances supplied by you for use in communal areas.
Liability insurance. Property owners’ liability cover is crucial to protect you against legal claims if a tenant or visitor is injured on your property.
Loss of rent cover. This covers your rental income if the property becomes uninhabitable due to an insured event. It can also cover the cost of alternative accommodation for your tenants if the property becomes uninhabitable.
Legal expenses. If there is a dispute, this covers the cost of any legal fees involved, including breach of contract and eviction. Always contact your insurance provider or broker first before taking legal action.
What exclusions and conditions are there with HMO property insurance?
HMO property insurance policies often come with exclusions and conditions that landlords should be aware of. Common exclusions/conditions include:
Damage caused by tenants. Some policies may not cover malicious or intentional damage by tenants. Let your broker know if this cover is important to you to ensure they source the right policy.
Cooking facilities and Portable Heaters condition. Most insurers will add a condition that no cooking facilities or portable heaters are in the rooms. Damage caused by cooking or portable heaters would be excluded. It would be your responsibility to ensure the tenants know this and abide by it; otherwise, it could invalidate the whole policy.
Unoccupied properties. If your HMO is left unoccupied for a specific period, typically over 30 days, certain coverages like building insurance or contents insurance might be void. Although with an HMO, this would be unlikely, it could be applicable for students who leave for summer.
High-risk tenants. Certain types of tenants, such as students or asylum seekers, may affect the terms of the coverage and premiums you are offered.
Property Inspections. Most policies include a condition that states you must inspect the property a certain number of times a year (usually at least every three months) and have evidence of this.
Failure to comply with the conditions of the HMO licence. You need to get a licence for an HMO with five or more tenants (sometimes fewer, so check with the local authority). The licence ensures the property meets the safety and management standards set by the local council. Failing to comply with the conditions of the licence could invalidate your insurance.
It’s very important to review your policy’s small print to understand any limitations and make sure you’re fully protected. This is where a reliable insurance expert like Glowsure can provide reassurance and advice.
Why choose Glowsure for landlord HMO insurance?
At Glowsure, our mission is to make your life as an HMO landlord simpler and less stressful. Our friendly experts are on standby to help you protect your investment and livelihood. We will do everything in our power to get the right insurance policy for your needs at a competitve rate.
Here are a few reasons why landlords across the UK choose Glowsure:
Expert advice: Choosing landlord insurance can be complex and time-consuming. We know HMO insurance inside-out and can give you clear advice on what coverage you need.
Tailored insurance cover: We source HMO landlord insurance policies tailored to each client’s situation and property. From building insurance to contents insurance, we can put together a comprehensive package to ensure you are fully protected.
Great service: When you work with us, you’ll never have to deal with a call centre. Our dedicated team will manage your queries personally and provide full support, including handling claims for you.
Compliance with legal obligations: HMO properties are subject to stricter regulations than standard rental properties. We will help to ensure your insurance policy aligns with these requirements.
How much does HMO landlord insurance cost?
Typically, HMO insurance cover is more expensive than standard landlord insurance due to the increased risks associated with renting to multiple unrelated tenants. However, the extra expense is well worth it, given the level of protection you receive.
The cost varies according to your property’s location, the number of tenants, the type of coverage you need and previous claims. For example, properties in city centres, higher crime areas or those rented to students may come with higher premiums due to increased risk of damage, high turnover and wear and tear.
At Glowsure, we work hard to find competitive premiums for landlords. We have access to many insurance providers and can present you with the product that best suits your needs. While the cheapest option is not always the best, you can count on our independent advice to help you make an informed decision.
Get an HMO insurance quote today from Glowsure
If you’re looking to protect your HMO property, Glowsure can source the right landlord insurance policy for your needs. We’re dedicated to helping you find the perfect cover for your property to protect your income and investment and meet your legal obligations. Our expert team is here to guide you through the process and make it as simple and stress-free as possible.
Contact us today for competitive HMO landlord insurance quotes.
Frequently asked questions about HMO Insurance
At Glowsure, one of our main priorities is simplifying the insurance process. We can source flexible policies that allow you to cover both HMO properties and non-HMO rental properties under the same policy, making your life much easier.
A typical HMO insurance policy includes buildings insurance, contents insurance, public liability insurance, loss of rent cover and legal expenses (scroll up to read more about what is and isn’t covered). Glowsure can find tailored cover to suit your property and needs, including some or all of the above.
Yes, you can convert a property into an HMO but there are strict rules which vary depending on the number of bedrooms or if the property is within an Article 4 area. First, check with your local council to see if the property is within an Article 4 area. You will likely need planning permission and a HMO licence. You will be required to meet high safety standards and fire safety regulations. You’ll also need to conduct regular gas and electrical safety checks. Once converted, it’s vital to update your insurance to cover the risks associated with multiple tenants.
We would suggest seeking advice from a professional HMO consultancy service in the first instance.
Owners of HMO properties with five or more tenants must obtain an HMO licence, but this can vary, so it’s important to check with the local authority. HMO landlords have many legal obligations to ensure the property is safe, including upholding fire safety standards and making regular gas and electrical safety checks.
Failure to comply with HMO regulations can result in fines or legal action, so it’s essential to have both the correct insurance and necessary licences in place.
YES – you absolutely need insurance for an HMO, not least from a legal standpoint. Without the correct HMO landlord insurance, you could face significant financial losses in the case of property damage, tenant disputes or accidents.
Standard landlord insurance policies do not provide adequate cover for multiple occupants, leaving you exposed to potential risks. It’s essential to work with an insurance expert to find the right HMO landlord insurance.
HMO insurance is typically more expensive than standard landlord insurance because of the higher risks associated with renting to multiple unrelated tenants. However, the extra cost is a small price to pay for the peace of mind that comes with knowing your property is protected against accidents, damage, and legal issues.
An HMO licence is generally required for properties with five or more tenants (a mandatory licence). However, depending on your local authority, some smaller HMOs may also require a licence (an additional licence).
It’s important to check with your council to determine whether your property needs to be licensed.
Yes! If you don’t tell them and there is a claim, it is very likely that your claim will be declined and the policy can even be cancelled. You also have to declare this on any future insurance policies which could increase your premiums as you would be deemed ‘higher risk’.
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