If you're thinking about taking in a lodger, now is the time to do it...
Why take in a lodger?
Taking in a lodger is a great way to share the bills, generate a bit of income and have some company in the house.
It's thought that one third of households have two or more spare rooms. That's about 16 million rooms that could be making money for their owners.
In April 2016, the government increased the tax-free amount you can receive in rent from a lodger through the Rent a Room Scheme. Happy days for those with a spare room.
If a disaster strikes and you need to move out of your home because of a fire or flood, will your home insurance pay out for replacement accommodation for your lodger?
When you take in a lodger some insurance companies may see you as being more of a risk. So they may increase the cost of your cover, exclude claims for theft or refuse to insure you altogether.
You should also check whether you're covered in case your lodger gets injured whilst living with you and decides to sue.
And, if a disaster strikes and you need to move out of your home because of a fire or flood, will your home insurance pay out for replacement accommodation for your lodger?
LV= provide a comprehensive home contents insurance policy that provides cover for theft (this is restricted to force or violence), loss and damage even if you have a lodger.
However, your home contents cover doesn't cover your lodger's belongings. It's only for you and your family who live at the property. Your lodger will need to get his or her own contents cover.
Need contents insurance, for if disaster strikes?