Buy-to-Let Insurance for Houses in Multiple Occupation (HMOs): What's Different?

Standard landlord insurance and HMOs don't mix well. Insurers treat shared houses as higher risk, and a policy that isn't built for that could leave you without cover when something goes wrong. Here's what sets HMO insurance apart, what it should cover, and how to make sure you're properly protected.

What makes an HMO different from landlord insurance

An HMO is typically a property let to three or more tenants from separate households who share communal facilities. That shared-living setup creates higher footfall, more wear on communal areas, and a greater likelihood of accidental damage than a single-family let. Insurers price for that extra exposure, which is why a standard landlord policy will often exclude or void cover the moment they discover you're running an HMO.

Licensing is another thing to get right. If your HMO has five or more tenants from two or more separate households, you're legally required to hold a licence under Part 2 of the Housing Act 2004. Some councils also require licences for smaller HMOs in their area. Operating without the right licence can put your insurance cover at risk, so sorting your licence early is essential. What HMO landlord insurance covers Dedicated HMO insurance is built around the realities of shared accommodation. You'd typically expect a policy to include:

• Buildings cover accounting for higher-risk communal spaces
• Contents cover for items you provide in shared kitchens, bathrooms, and hallways
• Landlord liability in case a tenant or visitor is injured on the property
• Loss of rent if the property becomes uninhabitable following an insured event
• Alternative accommodation cover if tenants need to be rehoused while repairs are carried out

Some policies also include legal expenses cover, which can be particularly useful when managing multiple tenancy agreements simultaneously.

Comparing HMO and standard buy-to-let cover

Standard buy-to-let insurance is designed for a single tenancy agreement covering the whole property. HMO insurance is structured for multiple independent tenants, often on separate contracts, sharing communal facilities. That structural difference affects everything from how claims are assessed to how void periods are handled between tenancies.

How much does HMO insurance cost?

What you pay depends on the size of the property, the number of tenants, where it's located, and the level of cover you need. HMO insurance does tend to cost more than standard landlord cover, but shopping around with specialist providers rather than general insurers usually gets you a better deal.

If you're not sure whether your current policy is up to scratch, or you're thinking about converting a property into an HMO, getting advice early can save you an expensive surprise down the line.

The experienced advisers at LDB Wealth have been helping landlords across the UK navigate decisions like this since 2014. Whether you're based near their Weybridge, Surrey office or further afield, the team at LDB Wealth can help you find the right cover for your property portfolio.