House Insurance and the lodger

Catbells

Hi My renewal for house insurance is due and I went on the Uswitch site to find a better quote. When I mentioned I had a lodger they said they couldn't offer me the lower price they had quoted - all because of the lodger. What can I do? Thanks.

mjdh1957

Find another insurance company?

Get rid of the lodger?

Not sure what any other options might be.

theartfullodger

Well, simple really:

a) Tell the truth, keep lodger, get correct cover & if place burns down, lodger 'orribly burned all is covered & you're (relatively) OK...
b) Tell lies, keep lodger, get incorrect & invalid cover & if place burns down, lodger 'orribly burned all is not covered & you're bankrupt ...
c) Kick out lodger & lose income


You are declaring the income to HMRC is rent (not rent-after-expenses) is more than £4250pa-£81:73/week??

Cheers!

Catbells

Thanks. Any idea how much more it would cost. The quote I was given for contents and buildings without the lodger was £800.

Catbells

Its getting too complicated for me and I would appreciate some help please. My lodger pays £90 a week, I change his bed linen and wash it twice a month. His girlfriend comes around 5 times a year for around 2 weeks each time (10weeks in total). We share the kitchen and bathroom. I've just looked at the Rent a Rom scheme and it doesn't mention girlfriends but does say that a service like cleaning his room and changing bed linen doesn't make any difference to the price.

theartfullodger

Catbells wrote: »

Thanks. Any idea how much more it would cost. The quote I was given for contents and buildings without the lodger was £800.

That's a lot - I pay only about £900pa for 4 rented houses...

Dunno who specialises in lodger insurance... you could try Alan Boswell or Hamiliton Fraser, insurance brokers... who both handle landlord stuff..

DVardysShadow

Catbells wrote: »

Thanks. Any idea how much more it would cost. The quote I was given for contents and buildings without the lodger was £800.

No one will have the least idea. Get a quote from the horses mouth.

And the answer to the question is that you should charge the lodger accordingly, taking your increased costs into account. Charge enough that you would resent the lodger leaving more than you would resent his presence.

HappyMJ

Catbells wrote: »

Its getting too complicated for me and I would appreciate some help please. My lodger pays £90 a week, I change his bed linen and wash it twice a month. His girlfriend comes around 5 times a year for around 2 weeks each time (10weeks in total). We share the kitchen and bathroom. I've just looked at the Rent a Rom scheme and it doesn't mention girlfriends but does say that a service like cleaning his room and changing bed linen doesn't make any difference to the price.

Then you should be paying tax on the difference between this and £4250. Assuming you charge for 52 weeks then the difference is £430 assuming you pay tax at 20% then the tax due is £86 per year.

theartfullodger

HappyMJ wrote: »

Then you should be paying tax on the difference between this and £4250. Assuming you charge for 52 weeks then the difference is £430 assuming you pay tax at 20% then the tax due is £86 per year.

Nope: You should declare all income less valid expenses (probably thus nearer, say, £3,500) and pay tax on that with property pages
see..
http://www.hmrc.gov.uk/manuals/pimmanual/PIM4000.htm
of SA tax return - if tax @ 20% the £700, if @ 40% £1,400.

Don't try & lie/cheat HMRC taxman.. If they find out (people tell 'em, oh yes they grass you up..) then you'll likely be investigated and/or fined, both expensive in time & money .

Cheers!

G_M

Insurance - all you can do is shop around like the rest of us. Many (most?) insurers will allow lodgers with no extra premium but you'll have to ask.

LODGERS
A lodger (broadly) lives in the same property with their landlord, and shares facilities. Unlike tenants (above) lodgers have few rights. There is advice for landlords considering taking in lodgers here:

LodgerLandlord (General information site)

Landlordzone (General advice)

Rent a Room Scheme (Government info on tax-free income from lodgers)

Catbells

theartfullodger wrote: »

That's a lot - I pay only about £900pa for 4 rented houses...

Dunno who specialises in lodger insurance... you could try Alan Boswell or Hamiliton Fraser, insurance brokers... who both handle landlord stuff..

I don't understand this either. Maybe you are under-insured?? Is it for contents and buildings?