Question 1

What is an HMO?

Accepted Answer

A House in Multiple Occupation (HMO) is a property let to 3 or more tenants who form 2 or more separate households and share facilities like bathrooms or kitchens. Larger HMOs with 5 or more tenants require mandatory licensing from the local authority, but smaller HMOs may need additional licensing depending on your local council’s scheme.

Question 2

Why can’t I use standard landlord insurance for my HMO?

Accepted Answer

Standard landlord policies are designed for a single household on a single tenancy agreement. HMOs have multiple tenants with individual agreements, shared facilities, higher footfall, and greater wear and tear. Standard policies typically exclude HMO occupancy or may be voided if the property is used as an HMO without disclosure.

Question 3

Do I need a licence for my HMO?

Accepted Answer

Mandatory HMO licensing applies to properties with five or more tenants from two or more households. Many local authorities also operate additional licensing schemes for smaller HMOs. Your insurer will need to know your HMO licensing status when arranging cover.

Question 4

Do I need employers’ liability for my HMO?

Accepted Answer

If you employ anyone — including cleaners, gardeners, or maintenance staff — you are legally required to hold employers’ liability insurance of at least £5m under the Employers’ Liability (Compulsory Insurance) Act 1969. This applies even if staff work part-time or irregularly.

Question 5

Can I insure an unlicensed HMO?

Accepted Answer

We can arrange cover for HMOs that do not require licensing — typically smaller properties in areas without additional licensing schemes. If your property requires a licence, you should obtain this before seeking insurance, as operating without one is a criminal offence and may void your policy.

Question 6

Can I insure multiple HMOs on one policy?

Accepted Answer

Yes. Landlords with multiple HMO properties can benefit from a portfolio arrangement covering all properties under a single policy with one renewal date. This simplifies administration and can provide cost efficiencies. We work with landlords holding between two and fifty or more HMO properties.

HMO Insurance