Taking in a lodger can be an excellent way to make some extra money, fill an empty room, and have some company around the home. With more and more people renting out their spare rooms to lodgers, the question comes up time and time again – do you need home insurance to include lodgers? Read on to find out!
Home Insurance And Risk
When you take out home insurance, the amount that you pay depends on several factors. One of the most important considerations is risk. This is calculated based on a number of considerations, such as where your home is and who lives there. Generally, when you take in a lodger, insurance providers consider that a lodger is an extra risk. This means, in the simplest terms, that your home insurance payments would change.
Why Is A Lodger An Extra Risk?
A lodger is considered an extra risk to your home because they are another adult who has a key to your home. There is no guarantee that they will not cause harm to your property, intentionally or accidentally, or that they may steal from you. Essentially, taking in a lodger increases the chances of you making a claim. However, that’s not all there is to the matter.
Covering Your Lodger
When your lodger comes to live in your home, you will need to ensure that they are fully covered under your home insurance. However, this does not always mean that you will need to take out a separate policy or have your lodger take out a policy themselves. You may be able to change your existing home insurance policy to take the extra risk into account.
Know Your Provider
Your next step will depend on who provides your home insurance. For example, some providers may not be willing or be able to offer you cover if you have a lodger coming into your home. In this case, you will need to switch your insurance provider and start a policy with them, instead. When you sign up with a new provider, ensure that they will offer home insurance with lodger cover so that you have the security that you need.
Are you thinking about bringing a lodger into your home? This can be a great idea, but make sure that your insurance policy is correct when you do! Get in touch with Crowthorne Insurance to discuss your options regarding house insurance including lodgers so that you are fully covered and completely secure.
Image source: Unsplash