UKinsuranceNET warns of possible cost of property money making ideas

The article, entitled:  Renting out your cellar, garden and even your patio: How YOU can make £1000 a week – from your house  in yesterday’s Daily Mail, suggested renting out a cellar for storage, a living room for homeworkers who don’t want to work from coffee shops, and even the kitchen for aspiring bakers.

Steve Bradley, MD of one of the UK’s leading insurance broking websites, , explains: “While the article is useful in giving examples of how to make money from your home, it is also extremely irresponsible not to mention the insurance angle.

“Nowhere in the piece (except for the tip relating to hiring out your personal car) was insurance mentioned. Anyone who rents out ANY part of their home – even just letting someone come in to the kitchen and bake a cake, or someone else sitting in your front room using your wi-fi – MUST, at the very least, inform their insurer.

“Having a stranger in your home is high risk. It potentially leaves you open to compensation claims if they are injured whilst on your premises, or they damage your property.

“Not only that, as they are a paying guest, you are in effect running a business from your home – which your standard home buildings and contents insurance typically won’t cover you for.

“By letting your insurer know of your plans, you can make sure that you still have adequate insurance protection. The insurer may or may not charge you an additional insurance premium to cover the extra risk, but either way, at least you’ll have the peace of mind that you are protected.

“Failure to inform your insurer could see any claim rejected – even a claim unrelated to your money making enterprise”.

Mr. Bradley adds that homeowners should also inform their mortgage company or landlord and get their approval, as not doing so could break the terms of their contract.