HMO Landlord Insurance

For landlords who let properties to multiple tenants (also known as house shares), there are many covers to consider when selecting a suitable insurance policy.

From liability insurance to protect you in the case of an injury claim by a tenant or visitor, to buildings insurance to cover damage caused by occupants, right down to contents insurance to cover things like fixtures and fittings—it’s important to secure adequate protection for your property investment.

What is an HMO?

The UK government defines a house in multiple occupation as a property rented out by at least three people who are not from one ‘household’ but share kitchen or bathroom facilities. A ‘household’ⁱ is typically defined as family or people in a relationship. Large HMOs are defined as having five or more tenants who form more than one household. Operating a HMO will require a licence from your local authority and is likely to be subjected to regular inspections.

Converting a single property into HMO suitable accommodation may produce healthy returns for a property owner. There are many considerations when thinking about converting a building into a house of multiple occupation.

You will need to ensure that you are providing enough space for your tenants, install suitable facilities and consider safety aspects. These can include (but not limited to) factors such as fire doors, smoke detectors, gas and electrical safety, waste disposal facilities and number of washrooms etc. In addition, your property insurance will need to reflect the way the building is utilised accurately.

What is HMO landlord insurance?

A standard landlord insurance policy may not provide adequate cover for an HMO landlord. It is possible to include multiple areas of cover to create an HMO policy, including:

• Buildings insurance and contents insurance
• Public liability insurance
• Loss of rent
• Alternative accommodation
• Accidental damage
• Home emergency
• Malicious damage
• Employers’ liability
• Legal expenses

It is possible to cover several HMO properties under a single policy with a common renewal date. This can help minimise your administration and simplify your arrangements. It is also possible to combine standard properties (commercial and residential) alongside HMO properties in the same policy.

How can Gallagher help with HMO landlord insurance?

It could be worthwhile discussing your rental property with us to ensure you are getting appropriate levels of cover to suit your circumstances.

At Gallagher, we have a dedicated team of insurance professionals available to take your call and chat through your requirements. We already insure many property owners so we can work with our panel of insurers to find you suitable covers. We can then arrange your policy to include all of these covers under a single policy, with one premium.

i https://www.gov.uk/house-in-multiple-occupation-licence