What’s the impact of a lodger on my home insurance?
Firstly, you’ll need to make sure you tell your home insurance provider. A standard home insurance policy probably won’t cover you sufficiently and there may be some exclusions such as with theft. Theft under the usual home insurance policy is compensated if there are signs of forced entry. However, if you invite a lodger, or even a friend, into your home and something goes walkabout, you might not be covered for it.
It’s also worth thinking about what might happen if your home suddenly became uninhabitable through a fire, flood damage or a storm. Have a think about whether your policy will pay for alternative accommodation for you and your lodger.
You’ll also need to be aware that in most cases contents insurance for lodgers won’t be covered by your own policy. In which case your lodger will need to organise their own or you’ll need to revise your own policy.
The bottom line is – be honest with your insurer. It’s all well and good taking in a lodger to make some extra money but if your insurance is invalidated because of it, then it could cost you an awful lot more.