Does Home Insurance Cover Letting A Room To A Lodger?


does home insurance cover letting a room to a lodger


If you have a spare room in your home, you might consider taking in a lodger. Lodgers are not tenants, but you still need to tick all the right boxes – especially in light of your home insurance. In this article, we ask what the difference is between a lodger and a tenant, look at the key legal considerations, and assess the implications of taking in a lodger. Read on!

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The Difference Between A Lodger & A Tenant

The clearest difference between a lodger and a tenant is that a lodger lives in the same home as you, the landlord. This means that you are classed as a ‘live-in landlord’. On the other hand, tenants pay rent to live in a property owned by the landlord, but the landlord does not live there. In this case, you – the landlord – are classed as a ‘live-out landlord’. One important distinction is if you are a live-in landlord who does not share living space (aside from a shared hallway). In this case, the person living in the property would be classed as a tenant, rather than a lodger.

Home Insurance With Lodgers

Providing that you own your own home, and are not a tenant yourself, there is no legal reason why you shouldn’t be able to rent out your spare room. If you have a lodger, there is a chance that you might need to update your home insurance. That’s because your premiums could be affected by having a lodger – insurance providers consider a lodger to be an extra risk to the security of a home, as a person who holds a key. This doesn’t always mean you necessarily need to take out a new policy for home insurance to cover lodgers, but you should be aware your policy might need to be changed, and that in some instances, home insurance providers might be unwilling to offer you cover.

Who Else Needs To Know About A Lodger?

Typically, the other main parties that you need to notify about taking in a lodger are your mortgage provider and local authority, because a lodger can affect your mortgage contract and council tax, respectively.

What’s Covered For You & The Lodger?

As a general rule, your home insurance policy will cover only the landlord’s possessions, rather than the lodger’s. It is unlikely that your insurance provider will allow you to extend your cover to your lodger’s items. In this instance your lodger will be responsible for arranging their own home contents insurance.

We hope this article has shed some light on the home insurance implications of having a lodger. For a range of affordable home insurance packages, click here. You can also call Crowthorne today on 01344 349790 for more advice on the topic of lodgers and home insurance.

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