Renting out a room, flatlet, or your entire home can be a great way to earn extra income, especially during the holiday season. But before you welcome guests, ensure you’re covered for the extra risks. Here’s what you need to know:
Understand Your Risks Change:
- Personal buildings and home contents insurance won’t fully protect you when earning rental income.
- Claims can be rejected if you don’t have the right cover in place.
Key Areas to Consider:
- Buildings vs. Personal Insurance:
- Covers loss/damage to buildings and permanent fixtures (e.g., stoves, cupboards).
- May not cover damage if the property is rented out, unless there’s forced entry.
- Acts of nature cover could also be voided.
- Home Contents:
- Covers movable items (e.g., furniture, electronics).
- If renting out a furnished space, standard insurance likely won’t cover these items.
- Liability Cover:
- Protects you against claims for injury, property damage, or legal costs.
- Without proper cover, you could be liable for millions in personal claims.
Renting = Running a Business:
- When earning rental income, you need specialised insurance tailored to your needs.
- Even renting out a simple granny flat could expose you to significant risks.
Make sure you’re fully protected! Let’s chat to confirm your cover is right for you.
