Although both lodgers and tenants rent rather than own, the difference is that a lodger lives with their landlord but a tenant doesn’t.
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.
Great insurance and renewing was cheaper than previous year!! No need to search for cheaper insurance.
Mr Smith, via Trustpilot22 May 2017