Our Customers Love Us!

Home Insurance

Get a Quote

Get Quote

HomeProperty InsuranceHome InsuranceRenting Out Room

Renting Out Room

Renting Out a Room in Your Home

Many people have considered renting out a room in their home on an ad hoc basis, often this situation arrives when children have moved out and parents find themselves with a large property, that perhaps they do not wish or cannot sell.
Renting out a room by taking in a lodger has many benefits, for one thing you are helping to provide someone with a home, it can help pay the bills and can help provide company as well. Before embarking on renting a room, it is probably best to check with your home insurance company, to make sure that your policy will still cover you. Some insurance companies will not be happy about you taking in paying guests and you may find that you have to find an alternative home insurance provider. If your insurance company do agree, check the terms and conditions they are offering carefully, your policy may be endorsed with some exclusions and you have to clearly understand what these are. Also you will need to consider who will be insuring any personal belongings on the lodger, check with your own insurance company, they may well exclude these items.

As well as your home insurance provider, you should also check that your mortgage lender is happy with the situation; there are some restrictions on mortgages, which may not allow you to take in lodgers. Many people do not realise that there is also a tax incentive to renting a room in your home, called the “Rent a room scheme”. If you already have a lodger in your home or are thinking about letting rooms in your home (they must be furnished) you can receive up to £4,250 a year tax-free (£2,125 if letting jointly). This scheme is a government initiative and is voluntary, it lets you receive a certain amount of tax-free ‘gross’ income from renting furnished accommodation. The scheme only applies to your main residence; you must live in the property most of the time. It will not apply if you wanted to rent a second home or a home purchased as a buy to let for example.

The government defines a lodger as someone who pays to live in your home, you may or may not provide them with meals, but they should be allowed to use the facilities of the property, such as the kitchen and appliances. You are of course free to charge for the extra services, you will need to add the payments you receive to the rent charged, to work out the total receipts. Please remember, If you get more than £4,250 a year in total, you will have to pay tax, even if the rent is less than that. The lodger can occupy a single room in the home or even an entire floor of the property, however, you will not be allowed to claim under the scheme, if you house is converted in to self contained flats. Your property must be a single dwelling without partitioning. If you home is converted in to self contained flats, you will need to declare your rental income to HM Revenue & Customs and pay tax in the normal way. Unfurnished accommodation is not eligible for the scheme.

The scheme is not limited to homeowners, if you are renting a property your self you can also be considered, you will need to check with your landlord though to make sure they do not object to the situation. Person operating on a more commercial basis, such as a part time bed & breakfast may also be considered, but as listed below, individual circumstance, should be taking in to consideration to ascertain if the scheme is suitable.

There are advantages and disadvantages with the scheme, The main point to bear in mind is that if you are in the Rent a Room scheme you can’t claim any expenses relating to the letting (for example, wear and tear, insurance, repairs, heating and lighting). If you are going to rent a room, you are more than likely going to have to provide new furnishings and you will not be able to claim for these. Also, if you currently live alone, you will also see your council tax bill increase to the full amount if a lodger moves in.

Latest News & Advice

Woodworm Dry Rot

Woodworm Dry Rot

Woodworm, Dry Rot and Wet Rot. One of the most costly maintenance problems for homeowners is woodworm, dry rot and wet rot. If left untreated it can huge amounts of damage to the interior of your home. There are treatments and remedies to prevent it’s spread and to eliminate the problem it becomes critical. Woodworm is most commonly caused by the furniture beetle which leave larvae boreholes inside the major woodwork elements of a property. These area include the roof timbers, joists, staircase and floorboards. Woodworm can also infest ordinary household furniture causing a home insurance claim problem....

Types Door Window Locks

Types Door Window Locks

Types of Door and Window Locks – when purchasing a home insurance policy, you may find that your insurance company want you to have certain security measures in force at your property. These should be studied most carefully as without the correct protection being in force, you may find your cover compromised in the event of a claim. For most people, this involves having good quality door and window locks. Good physical security at your property, will be of a far greater benefit in deterring Theft than having an alarm fitted, but not being a lock expert, have do you discover if you have the correct locks fitted at your home?...

Subsidence Structural Problems

Subsidence Structural Problems

Preventing or Dealing with Subsidence and Structural Problems.Whilst subsidence is usually covered by a building insurance policy, it is definitely something that you do not want to happen at your property if at all possible. Claims for subsidence can be on the large side ( hence the reason for the standard policy excess being £1000) and even if the building is repaired by the insurance company, you may find that’s in the future, insurance is harder to source ( and possibly more expensive) and the market value of the property and it’s marketability may also diminish...

Why choose our specialist insurance cover?

Artboard 2 copy 18

Home Insurance from Assetsure icon-thin-chevron-down

Our Home Insurance can provide cover for your Buildings, Contents and Personal Effects. Monthly payments available

Artboard 2 copy 20

Legal Assistance as Standard icon-thin-chevron-down

All our policies include Legal assistance as standard up to £50,000 This offer Legal protection for problems relating to employment, contracts, property and personal injury etc.

Artboard 2 copy 21

Home Emergency as Standard icon-thin-chevron-down

All our policies cover Home Emergency as standard up to £500. this offers protection against unexpected events such as the failure of your main heating system, blockage of drains or failure of your domestic gas or electricity supply

Artboard 2 copy 22

£1,000,000 Cover for Buildings icon-thin-chevron-down

We automatically provide you with £1,000,000 cover for rebuilding cost of your property, ideal if you are unsure of your re-building cost.

Artboard 2 copy 17

Excellent service offered icon-thin-chevron-down

We like to offer all our customers a first class service, which is backed up by our Trust pilot ratings. We are open 6 days a week to assist you with your enquiries.


Instant cover and policies icon-thin-chevron-down

Most of our policies you can now buy online and receive instant documentation. Of course, you are more than welcome to call us and we can provide your cover over the phone