Home insurance for live-in landlords
What's the difference between a lodger and a tenant?
Although both lodgers and tenants rent rather than own, the difference is that a lodger lives with their landlord but a tenant doesn’t.
Get to grips with lodgers insurance
Letting your spare room makes good financial sense but it’s essential to be fully aware of the terms of your home insurance, as taking on a lodger could invalidate your cover and leave you significantly out of pocket should the worst happen. Live-in landlords must tell their home insurance provider that they are letting rooms in their property as there may be increased risks that could affect your premium.
You should also think about the impact that new lodgers can have on your cover. For instance, what is their credit history? Do they have a guarantor? Do they have any unspent criminal convictions? It’s useful to have this information to hand when adjusting your cover, as failure to contact your insurer could invalidate your policy and leave you with a hefty bill in the event of a claim.
When taking out home insurance with lodgers as a live-in landlord, you should double check the policy terms and exclusions. Generally, each party is responsible for their personal belongings, so lodgers should seek their own contents insurance. Landlords are responsible for the building as well as their own contents.
Home insurance with lodgers
- Up to £1 million as standard for loss or damage to the structure of your property or permanent fixtures.
- Up to £50,000 legal expenses cover to pay for legal support for property disputes.
- Up to £500 home emergency cover per callout to temporarily fix burst pipes, roof damage and failure of the domestic power supply (gas or electricity).
- Public liability up to £5 million included.
What our customers say
Your questions answered
Can a lodger just move into the house?
No, there are legalities in place to protect Landlords and lodgers. A new member of your household, who isn’t related to you, brings new risks. For this reason you must inform your mortgage lender and home insurance provider, and in some cases the local council, of your change in living circumstances.
Do I need to have a contract with my lodgers?
It is generally recommended that all live in landlords have a contract with their lodger. This is to lay out the terms and conditions of the lease, similar to a tenancy agreement. It is also recommended that an inventory documenting personal belongings as well as the current condition of the property is drawn up at the beginning of a new lease.
Does everyone have the right to rent?
Technically, yes, anyone can rent a room out of their house but there are laws which must be adhered to. It is now law to check a person’s immigration status before letting a room in the UK. If you are a tenant who would like to sublet then you must seek permission from your landlord.
Does my home insurance cover my lodger’s belongings as well as mine?
As the landlord you are responsible for the building insurance and your own contents insurance. This does not extend to your lodger's belongings, so they should seek their own contents cover.
Should I take in a lodger?
Under the government's Rent a Room scheme you can earn up to £7,500 tax free a year from renting out a room in your house. Nowadays many lodgers are simply young professionals who cannot afford to buy. They are looking for a good standard of accommodation in a high demand area.