How much does an HMO warranty cost?
As a rough guide, around 1.25% of the rebuild cost for a structural warranty on an HMO registered before work starts (plus a modest broker fee, only charged if we arrange your cover). Here is what drives the price and how a quote is made up.
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- Insurer quotes usually within one working day of your proposal
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- Structural and non-structural cover
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The rough guide
HMO warranty cost as a percentage of the rebuild cost
Most HMO structural warranties come out at a percentage of the rebuild cost - what it would cost to rebuild the finished property, not what you paid for it and not what it will be worth. That figure covers the insurance premium and the provider's inspection and administration fees (plus a modest broker fee, only charged if we arrange your cover).
| Cover and stage | Rough guide | Notes |
|---|---|---|
| Structural warranty, registered before work starts | Around 1.25% of the rebuild cost | The simplest and usually cheapest route |
| Structural warranty, work already under way | Case by case | Usually more than 1.25%, and depends on the records |
| Structural warranty, work already finished | Around 1.5% of the rebuild cost | Where cover is available at all |
| Non-structural cover for the fit-out | Case by case | Depends on the work, the provider and the limits chosen |
| Our broker fee | Shown separately | Our modest broker fee is only charged on success - if we do not arrange your cover, you pay us nothing. |
Minimum premiums and fixed inspection fees mean a small HMO can work out at a higher percentage, and extras such as 12 year cover add to it. Your quotation shows every part of the cost separately.
Worked examples
Three HMO projects, three prices
Illustrations only, not quotes - they show how the rough guide works and why two similar-sized HMOs can be priced differently. The figures are made up for the examples.
| Example | Rebuild cost of the finished property | Rough guide | Roughly |
|---|---|---|---|
| 5-bed house to ensuite HMO, one wall removed with a steel beam, registered before the start | £350,000 | Around 1.25% | Around £4,375 |
| 7-bed HMO with a loft room and rear extension, registered before the start | £500,000 | Around 1.25% | Around £6,250, more if the provider wants extra inspections |
| The same 5-bed HMO, finished before anyone arranged a warranty | £350,000 | Around 1.5% | Around £5,250, if a provider will cover it |
| Fit-out only - five ensuites and a communal kitchen, no structural work | - | Non-structural cover, case by case | Ask for an indication |
What drives the price
What providers price on for an HMO
- Rebuild cost of the finished property - the starting point
- How much structural work there is - removed walls, steels, loft rooms, extensions
- The existing house - its age, construction and condition
- The fit-out - how many ensuites and kitchens, if you want non-structural cover
- Stage of the work - before the start is cheapest, a finished HMO costs most
- Your track record and your builder's, especially on HMOs
- Policy length and extras, such as 12 years instead of 10
What you pay
What an HMO warranty quote is made up of
Every quotation we give sets out each part of the cost separately, so you can see exactly where the money goes.
Insurance premium
The cost of the cover itself, set by the provider or insurer, plus the insurance premium tax that applies to it.
Technical inspection fees
The provider's charge for reviewing the plans and inspecting the existing house and the new work.
Administration and broker fees
The provider's administration fee, where it charges one, and our broker fee for arranging the cover. Our modest broker fee is only charged on success - if we do not arrange your cover, you pay us nothing.
When it is paid
Most providers ask for payment when the project is registered, before work starts or before cover begins. Cover for a finished HMO is usually paid in full before it is confirmed. Your quotation says what is due and when. Everything you pay for the cover goes to the provider - we do not hold client money.
Ways to keep the cost down
- Ask for quotes while the plans are being finalised, and register before work starts on site
- Have the floor plans and the engineer's calculations ready - we can then prepare the proposal straight away
- Get a condition survey of the existing house early if the provider is likely to want one
- Use a builder with a track record on HMO conversions
- Keep dated photos of every stage, especially steels and anything that will be covered up
- Tell us about several HMOs at once - each will usually need its own policy, but a provider may look at a group discount
Questions about cost
How much does a structural warranty cost for an HMO conversion?
As a rough guide, around 1.25% of the rebuild cost for a conversion registered before work starts (plus a modest broker fee, only charged if we arrange your cover). The provider sets the final price.
Is a warranty worth it for a 5-bed HMO?
That is your decision - it depends on how you will fund it, whether you might sell and how much you want the work protected. See do I need an HMO warranty.
Is there a broker fee?
Yes. Our modest broker fee is only charged on success - if we do not arrange your cover, you pay us nothing. It is shown separately on your quotation.
Last reviewed 30 October 2026 by the HMO Warranties team. General information only - not advice. Your cover is set by the policy wording.
Request an indication
Tell us about the HMO and the work, and we will give you an indication of what the cover is likely to cost, before you commit to anything.
- Takes under a minute
- Instant reply by email with your reference
- Insurer quotes usually within one working day of your completed proposal
- HMOs anywhere in England, Scotland, Wales and Northern Ireland
- Free and no obligation
Already filled in a proposal form? Email it to us or send it on WhatsApp with any drawings you have and we will take it from there.
