Renting to students is often seen as a dependable investment for landlords. There’s high demand, consistent turnover, and many properties in university towns are purposefully designed for this type of let. But while student rentals can be profitable, they also come with additional responsibilities, particularly when it comes to insurance.
One of the most common points of confusion is around whether a student rental qualifies as a House in Multiple Occupation (HMO), and what that means for the landlord’s insurance policy. Many landlords assume that a standard landlord insurance policy will do the job, only to find out later, sometimes at the worst possible moment, that their setup required HMO-specific cover all along. So, does renting to students mean you need HMO insurance? In many cases, the answer is yes. But let’s explore why.
Understanding What Counts as an HMO
The term “House in Multiple Occupation” carries real implications for how a property must be managed and insured. In the eyes of most councils and insurers, an HMO is a property rented to three or more people who are not from the same household, but who share common facilities like a kitchen or bathroom.
For example, if three students rent a house together and they each have separate tenancy agreements, they are considered unrelated individuals living in shared accommodation. Even if the tenants know each other or move in as friends, the legal and insurance perspective sees them as separate households, making the property an HMO.
In some areas, even smaller shared properties fall under additional licensing schemes. Councils can impose stricter local rules, which means you might need a licence even if your property doesn’t meet the national criteria. This varies by location, but the key point is this: the definition of an HMO depends on how your property is used, not how you view it.
Why the HMO Label Matters for Insurance
Insurance providers assess risk based on occupancy type, and HMO properties are generally seen as higher risk than single-family lets. There are more tenants, more foot traffic, and a greater chance of accidental damage or maintenance issues. The communal nature of student living, often with separate tenancies and shared responsibility, increases the likelihood of disputes or negligence, whether that’s leaving taps running, damaging communal areas, or ignoring safety instructions.
Because of these increased risks, many standard landlord policies exclude cover for HMOs. Even if you’re paying your premiums and keeping your property well-maintained, your insurer could deny a claim if it turns out the property was operating as an HMO and you didn’t declare it.
Even in cases where all tenants sign one agreement, if they are not related and are living as separate households, many councils and insurers still apply HMO rules. The presence of shared facilities like kitchens or bathrooms reinforces this classification.
What surprises some landlords is that an HMO designation doesn’t always depend on whether the property is licensed. A licence is a legal requirement based on local authority rules. Insurance, however, is based on risk, and the presence of unrelated tenants sharing a home is enough for most insurers to consider the property an HMO.
That’s where the need for proper, purpose-built HMO insurance comes in. Without it, you may be left without cover for essential protections like buildings, liability, or loss of rent, just when you need them most.
How We Help Landlords Get It Right
At Ashburnham Insurance, we specialise in helping landlords who let to students, including those with HMO properties. We don’t treat HMOs as a red flag or avoid covering them. In fact, we actively work with insurers who understand this type of let and offer tailored policies to suit it.
When you come to us for cover, we’ll ask the right questions upfront. We’ll take the time to understand how your property is set up, how many tenants you have, and how their tenancy agreements are structured. This allows us to recommend insurance that accurately reflects your real-world risk, so you can rent with confidence.
Our HMO insurance policies cover all the essentials you’d expect, including buildings, landlord contents, loss of rent, and liability protection, but with terms that acknowledge the unique nature of student lets. Whether your tenants cause accidental damage, you experience a summer void period, or you face a legal dispute, we aim to make sure you’re properly covered.
Don’t Take the Risk
If you’re renting to students, there’s a strong chance your property qualifies as an HMO, even if it’s not licensed. Standard landlord insurance may not provide the protection you think it does, and the last thing any landlord wants is to find that out after something’s gone wrong.
At Ashburnham Insurance, we help landlords secure reliable, affordable HMO cover designed specifically for student lets. Whether you own one property or a growing portfolio, we’re here to help you stay protected and compliant, with no hidden gaps in cover. Get in touch with us on 0800 1696137 and make sure you’re covered.