What are the rules around HMO?

The standards include: fire precautions and means of escape in case of fire. adequate amenities (kitchen and bathrooms) are provided. adequate space is available to tenants and there is no overcrowding. proper management is in place.

Your property is defined as a large HMO if all of the following apply: it is rented to 5 or more people who form more than 1 household . some or all tenants share toilet, bathroom or kitchen facilities. at least 1 tenant pays rent (or their employer pays it for them)

How much is landlord insurance in the UK?

How much does landlord insurance cost per month? Landlord insurance for a typical 3-bed, 2-bath property in the UK with a £200,000 rebuild cost would incur an annual premium around £170 for building-only cover—that's roughly £16 a month for landlord insurance, depending on the interest rate charged for paying monthly.

What are the limitations of an HMO?

In an HMO there are some disadvantages. The premium that is paid is just enough to cover the costs of doctors in the network. The members are “stuck” to a primary care physician and if managed care plans change, then the member may not be able to continue with the same PCP.

What is not provided by an HMO?

For HMOs, out-of-network services are usually not covered at all, except for emergencies. PPOs differ from HMOs in that PPO plans will usually provide some coverage for these types of services, but coverage for in-network providers will be much better.

What is the difference between a PPO and a HMO?

HMOs don't offer coverage for care from out-of-network healthcare providers. The only exception is for true medical emergencies. With a PPO, you have the flexibility to visit providers outside of your network. However, visiting an out-of-network provider will include a higher fee and a separate deductible.

What is HMO insurance in simple terms?

A type of health insurance plan that usually limits coverage to care from doctors who work for or contract with the HMO . It generally won't cover out-of-network care except in an emergency.

What is a single tenancy agreement?

each person in the property has their own tenancy agreement because they each have exclusive possession of one specific room while sharing other facilities such as the kitchen. In this case, each person has a sole tenancy. one person in the property signs the tenancy agreement and has a sole tenancy .

What does building insurance cover?

Buildings insurance covers you if something happens to your home . For example, if a fire, flood or storm damages the building it will cover the cost of the repairs. It will cover the cost to rebuild, repair or replace things like your roof, walls, windows, doors or fitted bathrooms and kitchens.

Is Simply Business a broker?

Simply Business : Everything you need to know. Simply Business operates an online insurance brokerage which specialises in protecting the business its customers are building by simplifying the insurance-purchasing process for small businesses.

What is required for HMO plan?

HMO plans require that you choose a primary care provider With HMO insurance, you're required to choose a primary care provider (PCP) as your main doctor. Some people enjoy having a PCP because they value building a relationship with their doctor.

What three characteristics are required for an organization to qualify as an HMO?

The HMO must be an organized system for providing health care or otherwise assuring health care delivery in a geographic area, have an agreed upon set of basic and supplemental health maintenance and treatment services, and serve a voluntarily enrolled group of people.

HMO Landlord Insurance | No Occupant Number Limit (2024)

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Letting out Houses in Multiple Occupation have significantly higher risks than other property types. So get protected with specialist HMO landlord insurance with CIA.

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Cover for bedsits and shared houses
No limit on the number of occupants

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What is HMO landlord insurance?

HMO (House in Multiple Occupation) landlord insurance is specialist cover for landlords that own and rent out properties that are classified as HMOs.

With high house prices and the cost of living crisis, more people are sharing accommodation and looking to rent a HMO. Therefore, this is a great investment opportunity for landlords as it should be easy to find paying tenants.

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What does HMO insurance cover?

HMO landlord insurance typically provides landlord insurance specifically for HMO properties.

HMO landlords' insurance will cover your property for perils such as fire, flood and escape of water and certain policies will allow you to add cover for accidental damage and malicious damage. Here at CIA, we can provide different levels of cover to suit your individual budget and requirements.

What isn't covered?

Wear and tear are not cover under any insurance policy and HMO landlord insurance is no exception. HMO landlords must ensure their property has a valid HMO licence where required and complies with all regulations. (Check with your local council and the government website).

Our expert says...

"Accurate information must be provided when obtaining a quotation, including the building and the tenants type and number of tenants, to ensure you have a policy that is suitable. Here at CIA, we have multiple insurers that will offer policies for HMO properties."

Hannah Webster - Let Sales Manager

Compare HMO landlord insurance

Landlord building insurance covers the costs of repairing and rebuilding your property if it should get damaged as a result of any insured peril such as a fire, storm, or flood. Typically, this includes cover for the roof, floors and walls, as well as any permanent fixtures, such as kitchen cabinets and bathroom suites.

Insuring a HMO is riskier for providers as there are more tenants to cause damage and make claims. Therefore, it is harder to find providers that will accept your insurance application, and the cost may be higher.

With CIA, you can be confident in finding the right cover at a competitive price. We compare HMO landlord insurance from 9 providers to get you the best deal. Our experts will understand your needs to ensure you only pay for what you need.

For the insurance policy to be valid, the address must be registered as a HMO and the property must be the occupant's main place of residence.

Do I need insurance for HMOs?

A standard landlord insurance policy won't protect your investment if you rent out a HMO. You need specialist HMO insurance that reflects your HMO licence whether it's for a small HMO or a larger property that needs complex licensing.

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How to get cheaper HMO landlord insurance

The cost of HMO landlord insurance will depend on the location of the property, its size, the type of building, the number of tenants and the number of households.

CIA covers various tenant types including DSS, students, asylum seekers and professionals. Riskier tenants such as DSS will come with a higher premium, whereas your insurance may be lower if you rent to professionals.

Do I need HMO landlord insurance if I have landlord cover already?

Standard landlord insurance won't cover a HMO. If you already have a landlord insurance policy and begin renting out your property to multiple people from different households, you will need to change it to HMO insurance. Contact your insurer to update your protection to HMO landlord insurance.

As a standard landlord insurance policy isn't valid for HMOs, the insurer can refuse to pay out so inform your provider immediately. If your current provider doesn't offer HMO insurance, or if they offer you an expensive quote, CIA can help.

We compare quotes from 9 leading insurers to find you the best deal. Get a quote today.

Frequently Asked Questions

An HMO is a property in which multiple unrelated individuals or households share common facilities and living spaces, such as a shared kitchen, bathroom, or living room. This type of arrangement is common in student housing or properties rented out to professionals.

Here at CIA, we can cover properties that have been converted to HMO.

Yes, we offer specialist student landlord insurance and landlord insurance for DSS tenants.

A bedsit is a self-contained unit in a building. Whereas a HMO has at least three people living in the property, each from different households. These tenants will share facilities such as the kitchen and bathroom.

Yes, CIA can create a tailored quote to cover multiple HMO properties. Give us a call or request a callback to discuss your needs.

Here at CIA, we can offer cover for your portfolio that contacts a mixture of HMO and non-HMO properties.

If you own a HMO that is let out to five or more people that form two or more families, you must get a HMO licence. Licensing is in place to ensure that private landlords provide accommodation that is properly managed and compliant with health and safety regulations.

The main responsibilities of a HMO landlord include gas and electrical safety checks, ensuring that the property isn’t overcrowded, keeping the building in a good state of repair and providing adequate cooking and cleaning facilities.

Advice Centre for Landlords

Things HMO landlords need to know 21-09-2023

HMOs, houses in multiple occupation, are a common type of rental property. The UK government states that a rental propertyis considered to be a house in multiple occupationif a minimum of three tenants live there, forming two or more households, and toilet, bathroom or kitchen facilities are shared with other tenants. Examples of HMO properties […]

Can a landlord enter a HMO without notice? 13-11-2023

Being a HMO landlord, it is natural to want to protect your investment and do all you can to ensure tenants treat your property with respect. You will want to keep the property’s value and rent it out to other tenants in the future. But there are clear rules about entering your property without notice […]

Do I need an HMO licence for 4 tenants? 15-02-2023

Your rental property might be bringing in bountiful profit but does your HMO need a licence? You might have landed on a sweet spot location for students or even found the ideal borough in London that has reliable tenants. However, you may have overlooked when the right time is to get your HMO licence. […]