One of the impacts of the recession is that many more people are opening their homes to lodgers in order to make some extra income. This, if you have the space, can be a great idea.
However, many people have made the mistake of not informing their home insurance company when they’ve done this and as a result, have run the risk of invalidating their policy. And why is this? Well, having another person in the house along with their extra belongings, may mean that any insurance claims you make could be higher. Also, having a stranger move in with you and gain full access to your property does increase the chances of a burglary.
So it is vital that you let your home insurance company know if you take in a lodger. Once you’ve done this, you have two options open to you. You could add the lodger onto your own policy and pass the additional cost on to your lodger, or you could insist that the lodger takes out their own contents insurance before they move in. But be aware; even if you take the second option, you still need to make your insurance company aware that you have taken in a lodger.