Insurance pitfalls of lodgers

Robyn Hall

October 22, 2012

Figures from LV= show the number of lodgers in the UK almost doubled in 2012 to approximately one million, just one of the side effects of the recession.

But Mark Hutchings, sales and marketing director at Berkeley Alexander, warned lodgers would not normally be included as standard on many insurance policies.

He said: “Standard home insurance cover usually applies to the family which refers to husband, wife, partner/civil partner, children and other relatives who permanently live at the home. A lodger would not form part of this policy wording definition.

“Some insurers will not provide home insurance cover where lodgers are in place but many others will simply apply a premium loading or restrict cover for theft by violent and forcible entry only.”

He added: “Whilst the extra income for the homeowner is welcomed in assisting paying those ever increasing food, fuel and utility bills, the 954,000 households that currently have lodgers in the UK must tell their general insurance provider of the additional person in their household to prevent having a claim repudiated.

“This is a good time to contact clients and ensure that if they have a lodger or are planning to take in a lodger that they have the correct cover.”

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