Lodger Insurance- Obtain cover for your Buildings and Contents
You may find that following a change in circumstances, you have house room to take in a lodger.The reasons for doing so vary, sometimes perhaps when the family have left home you do so for the added company or as more and more people are now doing, to provide an additional income. Under the government “Rent a Room” scheme, you can currently earn £4,250 tax free by taking in a lodger, providing the room is furnished for habitation. Of course there are insurance implications of taking in a lodger and the presence of a non-family member in your home is a material fact that needs to be declared to insurers. Failure to do so may invalidate your insurance policy.
At Assetsure, we are happy to provide insurance for Buildings & Contents either together or separately for homes that have lodgers in residence.
Taking in a lodger is often done in a friendly “ad-hoc” manner especially if it is a family friend you are letting a room to and without any legal contract to be signed. We suggest that it is always a good idea to enter in to some kind of formal agreement even with a friend so everyone knows exactly where they stand, their responsibilities and what is included and excluded in the agreement. The contract should state, the amount of rent required, the period of the agreement, if the lodger is required to share the bills and if they are entitled to any other facilities or services at the property such as meals etc.
It’s important to establish the type of tenancy your lodger has been afforded and generally this falls in to two main categories.