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Wednesday, November 19, 2008

Landlords urged to check insurance

The latest research from AA Insurance shows over a third are seriously considering renting out a room as the credit crunch bites but nearly half admitted they weren't aware of the need to check their insurance policy.

Landlords need to consider their insurance

However, taking on a lodger increases the risk to damage and insurers could invalidate a policy if the holder has not informed them of their change of circumstances.

Simon Douglas, director of AA Insurance, said: "Even if a lodger is a family member or friend, accidents can still happen.

"But, provided you have an extension on your home insurance for accidental damage cover and have informed your policy of the lodger, you should be covered."

With nearly one in ten landlords (9.5 per cent) claiming for damage their lodger has made to their home, there is clear evidence of the risk of not updating their home insurance, the AA said.

Lodgers also overlook checking whether they are insured in their new residence.

The findings reveal that eight out of ten (79.74 per cent) did not ask whether their personal items would be covered by their landlord's insurance.

Chris Horne of leading landlord website Property Hawk urges landlords to thoroughly research their landlord insurance option before purchasing. Our website allows landlords to view a range of specialist landlord insurers and select the policy and cover which best suits their rental business.

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