In the three months preceding January, rental demand increased to its fastest pace for nine years, meaning that renting out your spare room could really be a winner.
However, a large proportion of insurance claims from burgled novice landlords are being rejected after they failed to inform their insurer of their new tenant.
Phil Stevens, product manager for Ultimatum says: The triple whammy of increased interest rates, rising utility bills and the soaring cost of living together with the growing pool of lodgers means that homeowners are feeling the pinch.
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It is easy to forget to let your insurer know when youve got lots of other things to arrange, but this could be an expensive mistake. Although your premium is unlikely to increase by a substantial amount, your policy will be different so you must tell your provider as soon as your lodger moves in. You should also check what your policy covers as some dont even cover lodgers possessions.
Other than this important task, there are a few more key things you need to make sure you take care of:
- Alert the local council to ensure their council tax records and electoral roll is updated
- Obtain references from your lodger
- Dont allow your lodger to store expensive equipment such as tools or gadgets in view
- Ensure that they are made aware of all burglar alarm codes and using the keys and locks properly.
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