Renting out rooms to lodgers could save money, but notifying home insurance providers is a must, it has been claimed.
Homeowners thinking about taking in a lodger to ease the pressure on their household finances are being urged to check their home insurance policies carefully to make sure both they and the person moving in are fully covered for all eventualities.
According to a study by AA Insurance, almost half of those living in the university towns of Oxford and Cambridge would consider renting out a room in their home if they were struggling financially, the Press Association reports.
However, it found that of those who already have lodgers, as many as three million could have invalid home insurance policies because they have not told their insurer about their new housemate.
Indeed, almost one quarter of landlords simply presumed their current policy would cover their lodger's belongings as well as their own, when in fact this may not be the case.
Simon Douglas, director of AA Insurance, said: "We are urging all landlords or landladies to check their insurance policy before any new lodgers move in. I am certainly concerned by the number of people who appear to be ignorant of this."
According to LandlordZONE, homeowners should never be tempted to take in a lodger without informing their home insurance provider and their mortgage lender.
Compare home insurance via money.co.uk
